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47500 Subang Jaya,
Selangor, Malaysia.
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Latest News

SINGLE PRICE POLICY IN GST!!!

May 2, 2017

KUALA LUMPUR, Feb 13 — The Single Pricing Policy (SPP) to streamline the prices of goods and services will be implemented after the Aidilfitri celebration this year.

Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hamzah Zainudin said the SPP is aimed at avoiding consumers from becoming confused on the price of goods and services.

“There are traders who display prices including GST (Goods and Services Tax), and there are those who display them by excluding GST, although the details are in reflected in the receipt. So it is difficult for consumers to make their choice,” he added.

He spoke to reporters after conducting checks on business premises in Jalan Masjid India here today.

“We are in discussions with all stakeholders, including hoteliers, restaurant owners, etc, and if there is no problem, it will be implemented after Hari Raya this year,” he said.

Commenting on the inspection carried out today, Hamzah said most of the owners did not display their license and left their shops for handling by the employees.

There are also shop owners who hired foreign workers to take care of their businesses, he added.

Earlier, Hamzah, who boarded the LRT train from Titiwangsa to Masjid Jamek, took the opportunity to mingle with passengers during the trip. — Bernama

- See more at: http://www.themalaymailonline.com/malaysia/article/single-pricing-policy-will-be-implemented-this-year-minister-says#sthash.zN7CAiB2.dpuf

SINGLE PRICE POLICY IN GST!!!
"Single Pricing Policy Will Be Implemented This Year, Minister Says". THE MALAYSIA ONLINE. Web. 2 May 2017.


KUALA LUMPUR, Feb 13 — The Single Pricing Policy (SPP) to streamline the prices of goods and services will be implemented after the Aidilfitri celebration this year.
 
Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hamzah Zainudin said the SPP is aimed at avoiding consumers from becoming confused on the price of goods and services.
 
“There are traders who display prices including GST (Goods and Services Tax), and there are those who display them by excluding GST, although the details are in reflected in the receipt. So it is difficult for consumers to make their choice,” he added.
 
He spoke to reporters after conducting checks on business premises in Jalan Masjid India here today.
 
“We are in discussions with all stakeholders, including hoteliers, restaurant owners, etc, and if there is no problem, it will be implemented after Hari Raya this year,” he said.
 
Commenting on the inspection carried out today, Hamzah said most of the owners did not display their license and left their shops for handling by the employees.
 
There are also shop owners who hired foreign workers to take care of their businesses, he added.
 
Earlier, Hamzah, who boarded the LRT train from Titiwangsa to Masjid Jamek, took the opportunity to mingle with passengers during the trip.

KUALA LUMPUR, Feb 13 — The Single Pricing Policy (SPP) to streamline the prices of goods and services will be implemented after the Aidilfitri celebration this year.

Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hamzah Zainudin said the SPP is aimed at avoiding consumers from becoming confused on the price of goods and services.

“There are traders who display prices including GST (Goods and Services Tax), and there are those who display them by excluding GST, although the details are in reflected in the receipt. So it is difficult for consumers to make their choice,” he added.

He spoke to reporters after conducting checks on business premises in Jalan Masjid India here today.

“We are in discussions with all stakeholders, including hoteliers, restaurant owners, etc, and if there is no problem, it will be implemented after Hari Raya this year,” he said.

Commenting on the inspection carried out today, Hamzah said most of the owners did not display their license and left their shops for handling by the employees.

There are also shop owners who hired foreign workers to take care of their businesses, he added.

Earlier, Hamzah, who boarded the LRT train from Titiwangsa to Masjid Jamek, took the opportunity to mingle with passengers during the trip. — Bernama

- See more at: http://www.themalaymailonline.com/malaysia/article/single-pricing-policy-will-be-implemented-this-year-minister-says#sthash.zN7CAiB2.dpuf

KUALA LUMPUR, Feb 13 — The Single Pricing Policy (SPP) to streamline the prices of goods and services will be implemented after the Aidilfitri celebration this year.

Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hamzah Zainudin said the SPP is aimed at avoiding consumers from becoming confused on the price of goods and services.

“There are traders who display prices including GST (Goods and Services Tax), and there are those who display them by excluding GST, although the details are in reflected in the receipt. So it is difficult for consumers to make their choice,” he added.

He spoke to reporters after conducting checks on business premises in Jalan Masjid India here today.

“We are in discussions with all stakeholders, including hoteliers, restaurant owners, etc, and if there is no problem, it will be implemented after Hari Raya this year,” he said.

Commenting on the inspection carried out today, Hamzah said most of the owners did not display their license and left their shops for handling by the employees.

There are also shop owners who hired foreign workers to take care of their businesses, he added.

Earlier, Hamzah, who boarded the LRT train from Titiwangsa to Masjid Jamek, took the opportunity to mingle with passengers during the trip. — Bernama

- See more at: http://www.themalaymailonline.com/malaysia/article/single-pricing-policy-will-be-implemented-this-year-minister-says#sthash.zN7CAiB2.dpuf

WHY GST ?

Oct 19, 2016

Why is Malaysia introducing GST
"Malaysia Goods And Services Tax (GST)". Malaysia-gst. N.p., 2016. Web. 19 Oct. 2016.


Goods and Services Tax (GST) is proposed to replace the current consumption tax i.e. the sales tax and service tax (SST). The introduction of GST is part of the Government's tax reform programmed to enhance the efficiency and effectiveness of the existing taxation system.

Introduction of GST offers Malaysian consumers and businesses various benefits including:

Improved Standard of Living

The revenue from GST could be used for development purposes for social infrastructure like health facilities and institutions, educational infrastructures and public facilities to further improve the standard of living.

Lower Cost of Doing Business

Under the current system, some businesses pay multiple taxes and higher levels of tax-on-tax (cascading tax). With GST, businesses can benefit from recovering input tax, thus reducing cost of doing business.

Nation-Building

GST is a better and more efficient method of revenue collection for the government. More funds can be channeled into nation-building projects for progress towards achieving a high income nation.

Fairness and Equality

With the GST, taxes are levied fairly among all the businesses involved, whether they are in the manufacturing, wholesaling, retailing or service sectors.

Enhanced Delivery System

GST will be administrated in a fully computerized environment, therefore speeding up the delivery, especially for refund claims. This makes it faster, more efficient and reliable.

Increase Global Competitiveness

Prices of Malaysian exports will become more competitive on the global stage as no GST is imposed on exported goods and services, while GST incurred on inputs can be recovered along the supplies chain. This will strengthen our export industry, helping the country progress even further.

Enhanced Compliance

The current SST has many inherent weaknesses making administration difficult. GST system has in-built mechanism to make the tax administration self-policing and therefore will enhance compliance.

Reduces Red Tape

Under the present SST, businesses must apply for approval to get tax-free materials and also for special exemption for capital goods. Under GST, this system is abolished as businesses can offset the GST on inputs in their returns.

Fair Pricing to Consumers

GST eliminates double taxation under SST. Consumers will pay fairer prices for most goods and services compared to SST.

Greater Transparency

Unlike the present sales tax, consumers would benefit under GST as they will know exactly whether the goods they consume are subject to tax and the amount they pay for.

GST Malaysia Calculation

Aug 23, 2016

GST Malaysia Calculation


"Steven Moo Financial Sustainability Blog: GST Malaysia Calculation". Stevenmoo. N.p., 2013. Web. 23 Aug. 2016.


 


 
For simple straight forward calculation, for Pemborong Calculation, assuming cost is RM30 and selling price RM40, Pemborong is able to make a profit of RM10.00, this profit is a Value Added differences, which subject to GST 6% X RM10.00= RM0.60.

However the GST has to be done through in accounting for cash flow as for the following
a) Paid to the vendor   (RM31.80)
b) Received from Customer RM42.40
c) Pay to GST Custom (RM0.60)


You are getting the same profit RM10.00 with the a) b) c) above. Custom getting RM0.60

However if ignoring input tax, it would be
a) Paid to the vendor   (RM31.80)
b) Received from Customer RM42.40
c) Pay to GST Custom (RM2.40)

You are getting the same RM8.20 profit only. Custom getting RM2.40.



How GST is going to affect our lives. Effective 1 April 2015, Malaysians is implementing Goods and Services Tax (GST) when they purchase products or seek services. There are standard rated 6% or zero rated or exempted and out of scope supplies.

"Persons" having businesses with annual sales turnover exceeding RM500,000 are liable to be registered under GST. "Persons" include an individual, sole proprietor, partnership, company, trust, estate, society, union, club, association or any other organization including a government department or a local authority which is involved in the business of making taxable supplies in Malaysia. 
The annual sales turnover can be determined based on either: 
  • The total value of taxable supplies of the current month and the previous 11 months, or
  • The total value of taxable supplies of the current month and the next 11 months.
For an average of monthly sales achieve lower than RM40,000 or based on how the financial statement being submitted previous year, everyone should have an idea GST need or need not to register.


Based on the table listed above, a business operator needs to register themselves in GST before able charging output tax to consumer and claim input tax from supplier. They may experience the following :-
a. Daily detail sales records is being captured.
b. Daily detail purchase records is being captured.

While non-taxable products and services items would be listed as well during this period.

Since the records is becoming TRANSPARENT in such a way that they might experience some impact over the accounts records being presented before 1 April 2015, and after GST implementation. Therefore during year 2014, business operators are recommended to hold a proper accounting records, and to do a proper stock check  

a. To ensure what type of stock in the business
b. To ensure stock value is captured

To facilitate the stock take process, online stock take system is available, which uses mobile smartphone that has internet access and touch screen capabilities. All data captured is able to translate into Microsoft Excel format. Kindly request for demo.

Market already has a mobile barcode capabilities to capture data for stock taking on the mobile phone. Well, GST create a tedious job for accounts people and book keepers. Please do ensure you have kept the records in order.

WHY GST?

Aug 22, 2016
WHY GST?
"Why GST". Royal Malaysian Customs Department. N.p., 2013. Web. 22 Aug. 2016.

GST is proposed to replace the current consumption tax i.e. the sales tax and service tax (SST). The introduction of GST is part of the Government's tax reform programmed to enhance the efficiency and effectiveness of the existing taxation system.

GST is proven to be a better tax system as it is more effective, efficient, transparent and business friendly and could spur economic growth as well as increase competitiveness in the global market.

GST is capable of generating a more stable source of revenue to the nation because it is less susceptible to economic fluctuations.

It is important to replace the existing SST in order to eliminate its inherent weaknesses such as cascading and compounding effects, transfer pricing and value shifting, no complete relief on goods exported, discourage vertical integration, administrative bureaucratic red tape, classification issues and etc.

Various benefits that GST can offer to Malaysian consumers and businesses are: 
  • Improved Standard of Living

    The revenue from GST could be used for development purposes for social infrastructure like health facilities and institutions, educational infrastructures and public facilities to further improve the standard of living.
  • Lower Cost of Doing Business

    Under the current system, some businesses pay multiple taxes and higher levels of tax-on-tax (cascading tax). With GST, businesses can benefit from recovering input tax, thus reducing cost of doing business.
  • Nation-Building

    GST is a better and more efficient method of revenue collection for the government. More funds can be channeled into nation-building projects for progress towards achieving a high income nation.
  • Fairness and Equality

    With the GST, taxes are levied fairly among all the businesses involved, whether they are in the manufacturing, wholesaling, retailing or service sectors.
  • Enhanced Delivery System

    GST will be administrated in a fully computerized environment, therefore speeding up the delivery, especially for refund claims. This makes it faster, more efficient and reliable.
  • Increase Global Competitiveness

    Prices of Malaysian exports will become more competitive on the global stage as no GST is imposed on exported goods and services, while GST incurred on inputs can be recovered along the supplies chain. This will strengthen our export industry, helping the country progress even further.
  • Enhanced Compliance

    The current SST has many inherent weaknesses making administration difficult. GST system has in-built mechanism to make the tax administration self-policing and therefore will enhance compliance.
  • Reduces Red Tape

    Under the present SST, businesses must apply for approval to get tax-free materials and also for special exemption for capital goods. Under GST, this system is abolished as businesses can offset the GST on inputs in their returns.
  • Fair Pricing to Consumers

    GST eliminates double taxation under SST. Consumers will pay fairer prices for most goods and services compared to SST.
  • Greater Transparency

    Unlike the present sales tax, consumers would benefit under GST as they will know exactly whether the goods they consume are subject to tax and the amount they pay for.

GST Tax Code for Malaysia

Aug 18, 2016
GST Tax Code for Malaysia
"Memory: Recommended GST Tax Code For Malaysia". Surewine. N.p., 2015. Web. 18 Aug. 2016.

This section provides a list of GST tax codes for Purchase and Supply. These tax code listings are recommendation to allow proper classification of purchase and supply transactions based on common scenarios encountered by GST-registered businesses. The tax code listings is not intend to be prescriptive nor comprehensive.
 
1. Recommended GST Tax Code listings for Purchase 
 
(a) GST Tax Code for Purchase
 
TX 6% - Purchases with GST incurred at 6% and directly attributable to taxable supplies.
 
TX-CG 6% - Purchase with GST incurred for capital goods acquisition.
 
TX-ES 6% - Purchase with GST incurred directly attributable to non incidental exempt supplies. (Note: Replace TX-N43)
 
TX-IES 6% - Purchase with GST incurred directly attributable to incidental exempt supplies. (Note: Replace TX-E43)
 
TX-RE 6% - Purchase with GST incurred that is not directly attributable to taxable or exempt supplies. (Applicable for partially exempt trader/mixed supplier only)
 
IM 6% - Import of goods with GST incurred. (By referring Customs Form No. 1 (K1),and/or other reference documents)
 
IS 0% - Imports of goods under Approved Trader Scheme (ATS) whereas the payment of GST chargeable is suspended on the goods imported.
 
BL 6% - Purchases with GST incurred but not claimable (Dis-allowance of Input Tax) (e.g. medical expenses for staff).
 
NR 0% - Purchase from non GST-registered supplier with no GST incurred. 
 
ZP 0% - Purchase from GST-registered supplier with no GST incurred. 
 
EP 0% - Purchases exempted from GST. (e.g. purchase of residential property or financial services)
 
OP 0% - Purchase transactions which is out of the scope of GST legislation (e.g. purchase of goods overseas). 
 
RP 0% - Relief Purchase under GST legislation. (e.g: purchase of RON 95 petrol & Diesel) 
(New code @ 20/07/16)
 
GP 0% - Purchase transactions which disregarded under GST legislation (e.g. purchase within GST group registration). 
 
AJP 6% - Any adjustment made to Input Tax (e.g: Bad Debt Relief & other input tax adjustment). 
 
(b) Explanation on the Recommended GST Tax Code for Purchases
 
(i) Tax Code: TX
 
This refers to goods and/or services purchased from GST registered suppliers. The prevailing GST rate is 6% with effect from 01/04/2015. As it is a tax on final consumption, a GST registered trader will be able to claim credits for GST paid on goods or services supplied to them for the furtherance of businesses. The recoverable credits are called input tax. Examples include goods or services purchased for business purposes from GST registered traders, imported services & and etc. 
 
(ii) Tax code: TX-CG
 
This tax code refer to purchase with GST incurred at 6% for all capital goods acquired that is claimable regardless the value of the goods. For example, land and buildings, equipment, machinery, vehicles, or others capital goods which the company claims for input tax and capitalize the acquired capital goods as their assets. The GST registrant who claiming the capital goods has to declare the value of this claimed capital goods under field (6a &6b), and field (16) of GST-03 return.
 
(iii)Tax Code: TX-ES
 
This is only applicable to GST registered trader that makes both taxable and exempt supplies (or commonly known as partially exempt trader). TX-ES should be used for transactions involving the payment of input tax that is directly attributable to the making non-Incidental Exempt Supplies. TX-ES only include in field (6a & 6b) GST- 03 return once the de minimis rule is fulfilled. Example for this tax code is your company bought wall paper for your residential apartment rented to others and purchase costs are already included 6% GST, but you are not eligible to claim the amount of input tax as it would be applied directly to make exempt supply (rental of resident apartment). Please refer to APPENDIX 5 for more details on specification for de minimis rule. (Note: Replace TX-N43) 
 
(iv)Tax Code: TX-IES
 
This refers for transactions involving the payment of input tax attributable to the incidental exempt financial supplies as input tax attributable to taxable supplies. This means that the registered person is entitled to claim any input tax that is attributable to the making of the following incidental exempt financial supplies. Example of usage for this tax code are such as purchased a security box for the accounts clerk to deposit daily earnings of the company in a bank, hiring of security firm to transfer/deposit money into financial institutions (bank), sells lots of shares through a remisier and GST charged on the commission, and incurred GST on the legal agreements and other expenses related to a financial loans. (Note: Replace TX-E43)
 
(v) Tax Code: TX-RE

This is only applicable to GST registered trader that makes both taxable and exempt supplies (or commonly known as partially exempt trader/mixed supplier). This refers to GST incurred that is not directly attributable to the making of taxable or exempt supplies (or commonly known as residual input tax). However, a mixed supplier can claim the full amount of the residual input tax incurred if the amount of exempt supply fulfilled the de minimis rule. Otherwise, he is required to apportion the residual input tax incurred accordingly. The example is such as residual input tax on operation overhead for a development of mixed property (properties that including residential and commercial). Please refer to APPENDIX 5 for more details on specification for partial exemption. 
 
(vi)Tax Code: IM
 
This refers to all goods imported into Malaysia which are subject to GST. The GST amount is calculated on the value which includes cost, insurance and freight plus the customs duty payable (if any) that based on the import declaration form (Customs Form No. 1 (K1), and other reference documents). This tax code applicable for all GST registrant unless the imported goods are for storage in a licensed warehouse or Free Trade Zone, or imported by GST registrant which is approved person under special scheme such as Warehouse Scheme, or Approved Trader Scheme.
 
(vii) Tax Code: IS 
 
This refers to the total value of goods imported under Approved Trader Scheme (ATS) where GST is suspended when the trader imports the goods into Malaysia. This scheme is designed to ease the cash flow of Trader Scheme (ATS) who has significant imports, and the approved person under ATS must declare the total value of the goods imported and suspended GST amount under ATS in field (14) & field (15) of GST-03 return. 
 
(viii) Tax Code: BL
 
This refers to GST incurred by a business but GST registered trader is not allowed to claim input tax incurred as prescribe in Regulation 36 Disallowance of Input Tax, GST Regulations 2014. Disallowance of Input tax are such as the supply to or importation of a passenger car, and the supply of goods or services relating to repair, maintenance and refurbishment of a passenger motor car. 
 
(ix)Tax Code: NR
 
This refers to the purchase of goods and services from non-GST registered supplier/trader. The supplier/trader that not registered for GST is not allowed to charge and collect GST. 
 
(x) Tax Code: ZP
 
This refers to goods and services purchased from GST registered suppliers whereas GST is charged at zero-rated or 0%. This is also commonly known as zero-rated purchases. The list of zero-rated purchase as prescribed in GST (Zero-Rated Supply) Order 2014. 
 
(xi)Tax Code: EP
 
This refers to the purchase in relation to exempt supply such as residential properties or certain financial services where there no GST was charged as it is exempt from GST. Consequently, there is no input tax would be incurred on these supplies. The examples on supply of goods and services as an exempt supply are prescribed in GST (Exempt Supply) Order 2014.
 
(xii) Tax Code: OP
 
This refers to the purchase of goods that being classified as outside the scope of GST. The example acquisition of out of scope purchase are such as non-business purchase, purchase of services made by a person who does not belong in Malaysia other than the supply of imported services, purchase from the government supply except selected government supplies prescribed in the GST (Application To Government) Order 2014, and purchase of goods made for a supply that outside Malaysia. 
 
(xiii) Tax Code: RP
 
This refers to purchase of goods which given relief from charging and payment of GST. Example for this tax code are purchase of RON95 petrol, diesel and other relief supply that been given relief from GST as prescribed under GST (Relief) Order 2014. 
 
(xiv) Tax Code: GP 
 
This refers to purchase of transactions which disregarded from charging and payment of GST under GST legislation. The examples are purchase within GST group registration, purchase made within a Warehouse Scheme & others disregarded supplies. 
 
(xv) Tax Code: AJP
 
Any adjustment made to Input Tax such as bad debt relief, and other input tax adjustments such as longer period adjustment and partial exemption adjustments. The GST registrant who claiming the Bad Debt Relief (AR only) has to declare the value of this claimed Bad Debt under field (6b), and field (17) of GST-03 return. Please refer to APPENDIX 5 for more details on specification for partial exemption adjustments. (This tax code is NOT applicable for credit/debit note). 
 
(Note: For more information on input tax credit, dis-allowance input tax, out of scope purchase, please refer to Guide on Input Tax Credit. Please refer to GST legislations (GST Acts 2014, GST Regulations 2014, GST (Exempt Supply) Order 2014) and Specific Guide (Guide on Partial Exemption & Guide on Input Tax Credit) for details on apportionment and de minimis rule.)
 
2. Recommended GST Tax Code listings for Supply 

(a) GST Tax Code for Supply

SR 6% - Standard-rated supplies with GST charged. 
 
ZRL 0% - Local supply of goods or services which are subject to zero rated supplies. 
 
ZDA 0% - Exportation of goods from Malaysia to Designated Area (Pulau Langkawi, Labuan, & Pulau Tioman) which are subject to zero rated supplies. (By referring Customs Form No. 2 (K2), and/or other reference documents) 
 
ZRE 0% - Exportation of goods or services which are subject to zero rated supplies. (By referring Customs Form No. 2 (K2),and/or other reference documents) 
 
DS 6% - Deemed supplies (e.g. transfer or disposal of business assets without consideration). 
 
OS 0% - Out-of-scope supplies under GST legislations. 
 
ES 0% - Exempt supplies under GST legislations. 
 
IES 0% - Incidental exempt supplies under GST legislations. (Note: Replace ES43) 
 
RS 0% - Relief supplies under GST legislations. 
 
GS 0% - Disregarded supplies under GST legislations. 
 
AJS 6% - Any adjustment made to Output Tax (e.g :Longer period adjustment, Bad Debt recover, outstanding invoice more than 6 months & other output tax adjustments). 
 
(b) Explanation on the Recommended GST Tax Code for Supply

(i) Tax Code: SR
 
A GST registered supplier must charge and account GST at 6% for all sales of goods and services made in Malaysia unless the supply qualified for zero-rated, exemption or falls outside the scope of the GST legislation. The GST collected from customer is called output tax. The value of sale and corresponding output tax must be reported in field (5a & 5b) in GST-03 return
 
(ii) Tax Code: ZRL
 
Zero-rated supply is a taxable supply which is subject to a rate of zero percent. A GST registered supplier can zero-rated (i.e. charging GST at 0%) certain local supply of goods and services and the supplier has to declare the value of this zero rated supply under field (10) of GST-03 return. Examples of zero-rated supply as prescribed based on tariff code in GST (Zero-rated Supply) Order 2014 such as milled-rice, fresh fruit, and live animals (cattle, buffalo, goat, sheep and swine). 
 
(iii) Tax Code: ZDA
 
This refers on the supply of goods from Malaysia to Designated Area (Pulau Langkawi, Labuan, & Pulau Tioman) that qualify for zero-rate if the movement is supported with Customs No. 2 Form which stated the supplier’s name and address as the consignor and the recipient’s name and address in DA as the consignee, with supporting documents such as invoice, packing list, etc. Thus, exportation of goods from Malaysia to Designated Area is subject to zero-rated supplies and the supplier has to declare the value of this export under field (10) of GST-03 return. For more information, please refer to GST (Zero-Rated Supply) Order 2014 and Guide on Designated Area. 
 
(iv) Tax Code: ZRE
 
A GST registered supplier can zero-rated (i.e. charging GST at 0%) the supply of goods that qualify for zero-rate if the movement of goods is supported with Customs No.2 Form (K2) which stated the supplier’s name and address as the consignor and the recipient’s name and address in overseas recipient as the consignee. Besides that, the supply of services will fall within the description of zero-rated if the services is attach with supporting documents such as invoice for an international services. Examples includes sale of air-tickets, and international freight charges. The supplier has to declare the value of this export under field (11) of GST-03 return. 
 
(v) Tax Code: DS
 
GST is chargeable on supplies of goods and services, and applicable if there is a goods or services provided with a consideration paid in return. However, there are situations where a supply has taken place even though no goods or services are provided or no consideration is paid. These are known as deemed supplies. The  examples for deemed supplies include free gifts (more than RM500), disposal of business assets without consideration, and imported services. 
 
(vi) Tax Code: OS
 
Out of scope supply is a supply which is not within the ambit or boundary of GST, and therefore GST is not chargeable on such supply. Examples of out of scope supply are such as non-business supply, and supply by statutory bodies and local authorities with respect to regulatory and enforcement functions, and supply of goods made outside Malaysia, government supply except selected government supplies prescribed in the GST (Application To Government) Order 2014. 
 
(vii) Tax Code: ES
 
This refers to supplies which are exempt under GST legislation. Exempt supply is a supply which is not subject to GST, and no GST is chargeable on such supply. Examples of exempt supply of services are domestic transportation of passengers for mass public transports i.e. by rail, ship, boat, ferry, express bus, stage bus, school bus, feeder bus, workers’ bus and taxi, toll highway, private education and private health services. Examples of exempt supplies of goods are residential properties, land for agricultural use and land for general use as burial ground, playground or religious building. The supplier has to declare the value of this exempt supply under the field (12) of GST-03 return. 
 
(viii) Tax Code: IES
 
This refers to exempt supplies made under incidental exempt supplies and applicable for wholly taxable supplier and partially exempt trader/mixed supplier. Incidental exempt supply is a supply of financial services made by a registered person who is not in the business of making the financial services. Incidental Exempt Supplies as prescribed in Reg. 40, GST Regulations 2014 that include interest income from deposits placed with a financial institution in Malaysia, interest received from loans provided to employees also include factoring receivables, and realized foreign exchange gains. The supplier may declare the value of this incidental exempt supply under field (12) of GST-03 return. (Note: Replace ES43) 
 
(ix)Tax Code: RS
 
This refers to supplies which are supply given relief from GST. Examples as in Goods and Services Tax (Relief) Order 2014 such as educational institutions that given relief from the payment of GST on acquisition of goods. The value of the relief supplies has to be declare under field (13) of GST-03 return. 
 
(x) Tax Code: GS
 
In certain circumstances, a taxable supply may be disregarded for the purpose of GST. This refers to supplies which are disregarded under GST legislation. These supplies include supply of goods or services between members of a GST group, supply of goods within warehouses under the Warehousing Scheme, supply of goods by a principal who is a taxable person to an agent who is acting in his own name as an auctioneer or others disregard supplies under GST legislation. The value of disregarded supplies has to be declare under field (13) of GST-03 return. 
 
(xi) Tax Code: AJS
 
This refer any adjustment made to output tax. These include longer period adjustment, bad debt recovered, outstanding invoices more than 6 months & other output tax adjustments such as partial exemption adjustments. The GST registrant who account the output tax on Bad Debt Recovered (AR only) has to declare the value of this Bad Debt under field (5b), and field (18) of GST-03 return. Please refer to APPENDIX 5 for more details on specification for partial exemption adjustments. (This tax code is NOT applicable for credit/debit note). 
 
(Note: Please refer to GST (Zero-Rated Supply) Order 2014, Guide on Supply for detailed on zero rated supplies. Please refer to GST legislation (GST Acts 2014, GST Regulations 2014, GST (Exempt Supply) Order 2014) and Specific Guide (Guide on Supply & Guide on Input Tax Credit) for details on exportation, deemed supply, out of scope supplies, exempt supplies, and incidental exempt supply.)


Recommended Additional GST Tax Code for Purchase and Supply 

The company can add new tax code based on the requirement of their businesses. The recommended tax code based on common scenarios of GST can be described as follows:
 
1. Recommended additional tax code listings for Purchase

(a) Additional GST Tax Code for Purchase 

TX-FRS 2% - Purchase under Flat Rate Scheme.

TX-NC 6% - GST incurred and choose not to claim the input tax.

TX-ER 6% - Input tax allowed on the acquisition of goods or services by local authority or statutory body.

IM-CG 6% - Import of goods with GST incurred for a capital goods acquisition.

IM-RE 6% - Import of goods with GST incurred that is not directly attributable to taxable or exempt supplies (Residual input tax).

NP 0% - Matters to be treated as neither a purchase of goods nor a purchase of services, and no GST incurred.
 
(b) Explanation on the Additional GST Tax Code for Purchases
 
(i) Tax Code: TX- FRS

This refers to purchase from a person who qualifies for Flat Rate Schemes where Flat Rate Addition is charged at 2%. The Flat Rate Scheme (FRS) is applicable to farmer/fisherman/livestock breeder who is not registered under GST because his yearly turnover is below the prescribed threshold limit (RM500,000) and he is not voluntarily registered under GST.

(ii) Tax Code: TX-NC

This refer GST incurred as purchases and the company choose not to claim the input tax. This tax code is not mapping with field 6a & 6b GST03 return and will turns as an expenses of the company.

(iii) Tax Code: TX-ER

This refer GST incurred as purchases and the company allowed to claim input tax on the acquisition of goods or services by local authority or statutory body. By referring Reg.49 of GST Regulations 2014, where any local authority or statutory body has acquired goods or services to perform its regulatory and enforcement functions, the local authority or statutory body is entitled to a credit for so much of its input tax that is allowable and reasonable to be attributable to the supplies made or to be made by it.
 
(iv) Tax Code: IM-CG

This refers to importation of goods with GST incurred which the company claim for input tax and capitalize the acquired of imported capital goods as their assets. The GST amount is calculated on the value which includes cost, insurance and freight plus the customs duty payable (if any) that based on the import declaration form (Customs Form No. 1 (K1), and other reference documents). The GST registrant which claiming the imported capital goods has to declare the value of this claimed capital goods under field (6a & 6b), and field (16) of GST-03 return. 
 
(v) Tax Code: IM-RE 

This refer to all goods imported into Malaysia which are subject to GST that is not directly attributable to taxable or exempt supplies (Residual input Tax). This is only applicable to GST registered trader that makes both taxable and exempt supplies (or commonly known as partially exempt trader/mixed supplier). The GST amount is calculated on the value which includes cost, insurance and freight plus the customs duty payable (if any) that based on the import declaration form (Customs Form No. 1 (K1), and other reference documents), and the company is required to apportion the residual input tax incurred accordingly based on partial exemption specifications.

(vi) Tax Code: NP

This tax code is applicable for matters to be treated as neither a purchase of goods nor a purchase of services, and no GST incurred. For example, the users can assign this tax code for purchase under Second Schedule of GST Act 2014, supplies that treated as neither a supply of goods nor a supply of services such as purchase of Transfer of Going Concern (TOGC), purchase from any society or similar organization, and purchase of goods or services made within or between designated areas based in Sec. 155 of GST Act 2014.

2. Recommended additional tax code listings for Supply 

(a) Additional GST Tax Code for Supply 

SR-MS 6% - Standard-rated supplies under Margin Scheme.

SR-JS 0% - Supplies under Approved Jeweller Scheme (AJS) 
 
OS-ER 0% - Out-of-scope supplies for Enforcement and Regulatory functions. 
 
OS-OV 0% - Out-of-scope supplies between overseas country with other overseas country. 
 
NS 0% - Matters to be treated as neither a supply of goods nor a supply of services, and no GST chargeable.

(b) Explanation on the Additional GST Tax Code for Supply

(i) Tax Code: SR-MS

Standard-rated supplies under Margin Scheme. A margin scheme allows an approved person as defined under regulation 75 of the Goods and Services Tax Regulation 2014 (GSTR) who meets all the conditions imposed under regulation 77 of the GSTR 2014 to calculate and charge GST on the margin i.e. the difference between the price at which the goods are supplied (selling price) and the price at which the goods were acquired (purchase price). If there is no margin (because the purchase price exceeds or equals to the selling price), then no GST is imposed for such supply.
 
(ii) Tax Code: SR-JS

Based on Sec. 73(2) Approved Jeweller Scheme GST Act 2014, any taxable person who makes any prescribed supply of goods to the approved jeweler shall charge tax and is not liable to account for tax on the prescribed supply. Any taxable person (approved jeweller) is not required to pay the tax charged to him by the supplier but shall account for the tax in his GST-03 return. This tax code is applicable only for approved person (Gold Bullion House/Bank) of Approved Jeweller Scheme. 
 
(iii) Tax Code: OS-ER

Where any local authority or statutory body has perform its enforcement and regulatory functions, the statutory bodies and local authorities can assign OS-ER with respect to their supply of enforcement and regulatory functions. 

(iv) Tax code: OS-OV
 
This refers supply of goods made outside Malaysia. This OS-OV applicable for supply of goods made/transfer from country outside Malaysia to other country outside Malaysia.  
 
(v) Tax code: NS

This refers supplies treated as neither a supply of goods nor a supply of services and no GST chargeable. Based in Second Schedule of GST Act 2014, supplies that treated as neither a supply of goods nor a supply of services such as Transfer of Going Concern (TOGC), pension, provident or social security fund, and supply by any society or similar organization. This tax code also applicable for supply of goods or services made within or between designated areas based in Sec. 155 of GST Act 2014, that notwithstanding section 9, no tax shall be charged on any taxable supply of goods or services made within or between the designated areas unless the Minister otherwise directs in an order under section 160.

Why use a POS system to manage my store?

Aug 9, 2016
Why use a POS system to manage my store?
"Why Use A Point Of Sale ( POS ) System". Carolinabarcode. N.p., 2016. Web. 9 Aug. 2016.


One of the focal points of any retail or hospitality business is the cash register. The ability to process transactions and tender cash are essential to the efficient operation of the enterprise. If you have a lot of cashPOS Systemtransactions, replacing the cash registers with a Point-Of-Sale (POS) system save you money. A POS system is computer software and hardware networked together to track sales and inventory as they occur. POS systems will solve a multitude of problems in your business.

Since implementation of a POS system is requires a large investment in time and money, the selection of software and hardware requires careful research into the features available and associated costs.

Retail POS Station in OperationGenerally, if your business has annual sales of $500k or more, you can achieve considerable savings and benefits from a POS system. From a Return-On-Investment perspective, it should pay for itself in between 1 and 2 years. For the new business, a POS system is a smart investment. The savings in labor hours and increase in efficiency makes balancing staffing easier, and the POS system automates many time-intensive tasks. Most POS software helps you stay aware of how your business is performing.

Many owners and manages find that the reports generated from the POS system invaluable in the day-to-day and long term management of the business. From revenue and profit reports, ordering reports and product sales reports, the POS system offers a perspective of the total business that is difficult to grasp in other ways.

Here are some of the advantages of using a POS system to track and manage your business:

  • Reduce Shrinkage - since inventory quantities are tracked in real time, understanding shrinkage becomes easier. Every modern POS system includes receiving and inventory functions. Proper use of these functions helps pinpoint the causes of inventory loss, reduces "out of stock" conditions and makes overall business management easier.
  • Manage Specials - POS systems automate the process of tracking current and marked down pricing. Discounts, coupons and promotions are often critical to attracting and retaining business. POS systems excel at managing and reconciling short-term discounting automatically.
  • Maintain Control - Many business owners discover that efficiency and customer service suffer when they're not on site. POS systems give you the ability to track volume and performance when you're not on theRetail POS System in Operation floor or you're busy with other tasks.
  • Improve Efficiency - POS systems allows your staff to tend to revenue generating tasks such as helping customers.  It eliminates the need to double-check inventory disparities and cash register reconciliation. POS systems dramatically reduce the effort required to do inventory and other repetitive paperwork. Improved efficiency means higher customer satisfaction, lower costs and higher sales.
  • Timely and Accurate Reports - POS systems give you the ability to analyze sales data. You can measure the effectiveness of pricing or advertising campaign. You'll know what items need to be ordered and in what quantity. You can identify high margin items and promote them further. You can easily calculate daily gross revenue, cost and profit. Historical data analysis helps to forecast your future needs.
  • Improve Customer Satisfaction - Using a POS system with barcode scanner will significantly speed up the check-out process. It gives you the ability to recognize your best customers and reward them for their patronage. It can easily collect customer data (from credit card transactions) that you can use for targeted advertising and incentive programs.
  • Manage Using Remote Access - Many POS system software packages give you the ability to manage the system while mobile. Whether you're traveling between stores or taking a day off, remote access gives you the ability to see what's going on at the location and take action when needed.
  • Flexible Expansion Options - Most POS system software gives you the ability to add registers and administration computers. If you have an eye to expansion, make sure that you can connect the multiple stores via the web or other connection method. This will allow you to use a single system to manage all your locations.

 

The Important Of P.O.S System for Businesses

Aug 8, 2016
The Important Of P.O.S System for Businesses
"The Importance Of POS Systems For Businesses | Yourcash". YourCash. N.p., 2013. Web. 8 Aug. 2016.

As the world moves further and faster into a thriving technological age, so must the way we conduct our business. POS systems are fast becoming the technology of choice and here’s why.

No matter what type of retailer you are, adopting a POS (point of sale) system can turn your business around by providing an all-in-one solution to a multitude of everyday issues. Inventories that fail to match tallies, unrecorded sales, human errors and the time wasted on correcting them are all fairly common problems faced by retailers on a daily basis. They are all easily avoided when using a POS system that accurately collects and records data, allowing you to really see how your business is functioning and how to continually improve it.

When it comes to inventories, organisation and consistency is key. Not just with delivery either, but each and every sale, damage and complementary giveaway. Imagine a system that automatically logs all of these in real time and saves them to a database across a network that you can access remotely. Furthermore, you can collate the data for detailed analysis allowing you can see exactly what the most popular product is and what is not and how and when it’s being sold.

The same goes for reductions and special offers. Unlike traditional manual cash registers, POS systems automatically calculate and track changes to pricing whilst simultaneously updating the inventory. This makes markdown management far easier as well as giving clear feedback on how effective any promotions are, right down to the last penny.

The thought of employing new technology in your business may seem a little daunting, to say the least. With POS systems however, they are designed to be user friendly, with a sole purpose of making life easier and business better. They allow staff to focus their attention on the customer, as well as the physical preparation and sale of products, cementing the most important values of retail.

POS systems can also track staff themselves: the times and hours worked and the number of transactions completed. This is not isolated to one location either. Multiple interfaces in different outlets all serve the same database, ensuring consistency across the board, in pricing, stock and accounts.

What you do with the data collected by your POS system is up to you. More and more manufacturers and suppliers are opening to statistical feedback that enables them to adapt their own services to the needs of their clients and customers. Likewise, the more you can learn how to analyse your data, the more you can grow your business. Wastage is costly and for the most part unnecessary, but often overlooked or not properly recorded. POS systems do the job for you.

As is the case with many computer-based systems, POS systems come with numerous packages and applications that serve the needs of the user. Once you have the basic hardware, you can pick and choose other tools and services that are of benefit to your own business requirements. The software can then be kept updated to really allow you to move with the times and take your business to the next level.


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