July 18, 2014

GST : Getting a GST Consultant?

Time is running short. GST, Income Tax, Government Bodies, BNM, Immigration all are teaming up together to get the things done which is to improve tax collection.

All information are captured during BR1M, register cars number plate through JPJ, announcing your own overseas holiday through facebook, spying on your business operation, newspaper on company announcement, selling your properties, homestay advertisement, detecting your profit Gross Margin, checking through your bank statement, are stated quite clearly how they are operates and their power through the Income Tax updates seminar which I have attended this month. No more civil investigation but crime investigation being implemented.

Income tax and Custom would share among their expertise, training up more people, and recruit outsource contractor that come with targeted tax collection. If a contractor is able to achieve that, another year of contract is succeeded awarded.

Anyhow, how about your GST in progress? Nowadays GST and Income Tax both sections are computerized, once reach the deadline, the computer would generate late penalty letter. It is quite troublesome for a taxpayer to come up with a letter for appeal. Of course for being late, if you want to appeal, the question of "pay first then appeal" would and could be used against you.

Since Government needs funds quite and perhaps very urgently, we all would expect GST implementation is going to be strict. The question of getting a GST consultant, is a matter how a consultant understand your business environment.

For example, if we employ a Computer Consultant, they will know about the computer technology rather than GST. If we employ GST consultant, they know about the GST, rather than the GST software, how is your book keeping, accounting flow and your income tax computation, and how is your profit being revealed.

As for me, I have been employed in a manufacturing and trading background, been to listed company, involved in the SAP/ERP, normal Autocount / UBS accounting package, in the accounting, costing and finance department, it is very easy for me to cope for being a GST consultant.

Therefore by getting a GST consultant, you have to be extra careful that they do not know what you want, but to mess up your whole business operation in order to cope with GST, because they will implement "I'm saying, You listen" kind of concept as they would not know the business operation and environment.

As for me, I listen first, then custom-made together or having a negotiating process for the whole process to implement GST. If you have a staff knowing how business and operation flow, this staff is perfectly GST consultant without getting a GST Consultant.

Of course, if you are late, let's say Jan 2015 to start to understand how GST flow, any GST consultant coming in would be an 100% instruction, you would listen the GST consultant always saying, GST law say this and that, just like reading from GST book. In other words, no time for both parties to understand and communication each other.

Think carefully, a real GST consultant should make your business operation flow smoothly through the period of preparing and implement the GST.

June 25, 2014

GST : Full of Surprises

GST is full of surprises where some part of the notes not being highlighted such as the following :-

a) Guide on Input Tax 27.10.2013

Where a registered person fails to pay the consideration for the supply of any goods or services made by his supplier within six months from the date of supply and he has claimed input tax on that supply, the taxable person is required to pay back the input tax by accounting an amount equal to the input tax as his output tax. Claim input tax if subsequently pays supplier.

b) Guide on Transitional Rule 21.02.2014. Who pay the GST?

If there is a continuous supply of goods or services spanning the GST commencement, only the portion of supply made before 1 April 2015 is not subject to GST. The proportion of supply made on or after 1 April 2015 is subject to GST.

For example,
After entering into a deal to build a RM1,340,000 commercial complex, a written S&P was signed in January 2015. On 15 May 2015, the purchaser requests that the flooring on the 2nd level to be upgraded to hardwood. The amount payable for the upgrade is not included in the written agreement. The charge for the upgrade by the builder is RM140,000. The ownership and possession will be transferred on 30 September 2015. The upgrade activity is a separate supply from the S&P signed. The builder issues a separate invoice for the upgrade RM140,000 on 20 May 2015 to the
purchaser and he pays the amount the following day.

c) Guide on Transitional Rule 21.02.2014. Contract if less than 2 years? Who Pay GST?

The provision of goods and services under a reviewable contract entered into no less than two years before 1 April 2015 can only be zero-rated until its first opportunity after that date for review or for a period of five years after 1 April 2015, whichever is the earlier.

A ten year business supply contract was made on 1 January 2013 and provides for a market review to be made every five years. If the review is to be made every five years i.e. 1 January 2018, supplies made from 1 April 2015 till 31 December 2017 will be zero rated and supplies made from 1 January
2018 will be subject to GST at a rate of 6%.

d) Guide on Transitional Rule 21.02.2014. Construction Agreement before 01.04.2015? Who Pay GST?
Valuation is needed after 01.04.2015 to calculate GST chargeable, or else the whole amount of contract amount would be subject to GST even agreement sign before GST. 

e) Guide on Register for GST Amend1. Every Company is remained registered minimum 2 years?

f) GAF contains all General Ledger includes Customer Information, Supplier Information, Banks, Profit & Loss Accounts to send forward to Custom when GST submission?

g) GST Refundable 14 days if submit Online?
For companies which are making yearly profit without having any export sales, this scenario would not ever happen, as every company is a net payable tax. But why Custom is saying 14 days is very efficient whereby 90% audience is not applicable?

h) Keeping 7 Years Accounting Record?
Seven (7) years record similar with the Income Tax requirement. Actually there are three (3) people are using these records, Income Tax, GST, and Kementerian Perdagangan Dalam Negeri, Koperasi dan Kepengunaan (KPDNKK). We might expect everyone from the authority would be using these seven (7) years of record.

i) After Individual GST registration, what next?

One might confuse that once register GST, everything is done properly. Studying it carefully, Group registration is at 2nd stage, Cash Basis instead of Invoice Basis, Simplified Tax Invoice, Special Scheme, E-voucher and etc... need some approval or registration. 31.12.2014 is the last day for GST registration, and penalty awaits 01.01.2015 onwards. The reason given is to make everyone ready for it which is 3 months before 01.04.2015 which everyone would shock that (3) months less if compare with the GST implementation date.

j) What comes first before De-Registration take place?
If there are no sales for a particular taxable period, companies are still required to submit a NIL return, i.e. to fill in ‘zero’ in the respective column.

June 18, 2014

GST : Mistake Watch Out

Although GST has not started yet, we might not aware what are the typical mistake that would happen in the long run. Let's check other GST countries by google it.

1. Fail to monitor Yearly Revenue Threshold RM500,000 from Gross Turnover
Business revenue might get near or achieve the threshold value without noticing it monthly, which it would hit the late register penalty as well as late payment penalty both at the same period.

2. Having so many business for a single business owner
Combine all the turnover from all of your trade, profession or all your sole-proprietorship business on the same business nature or different business nature to determine registration.
3. Having a Single Taxable Person
This one most people would find it hard to understand, what GST is suggesting is that as long as there is financial link, economic link or organizational link is happen, all type of business need to be combine although each company threshold is below RM500,000 and each business is belong to each individual.

Financial link refers to:
i. financial support given by one party to another;
ii. one party not financially viable without the support from another party; or
iii.common financial interest in the proceeds of the business

Economic link refers to :
i.seeking to achieve the same economic objectives;
ii.activities of one party benefit the other party; or
iii.supplying to the same circle of customers

Organisational link refers to:
i.common management;
ii.common employees;
iii.common premises; or
iv.common equipments

4. Does not file GST return if does not have any business transaction during the period?
Submit a "Nil" Gst Return is required, just like Income Tax once everyone has a tax file.

5. Always Claim Refund from Custom?
Either business starts to make losses or an exporter would have this kind of option. Other than that, the claiming would be a problem or an indicator that importing goods for quite some months.

6. Self Billed Tax Invoice
This option is a tough work for certain industry where supplier unable issue tax invoice for being the goods and services presented, the customer has to issue self-billed tax invoice instead (input tax) for supplier at such the determination of the raw material prices, terms and conditions is calculated and offered by the customer. Such as Property Agent Commission, Insurance Agent Commission, Professional Services Received, Palm Oil Sector FFB, and etc..

7. Transition Period
Please double check on the following:-
a) Issuing invoice without deliver goods before 01.04.2015, is subject to GST
b) Deposit or advance payment before 01.04.2015, is subject to GST
c) Property completed after 01.04.2015, is subject to GST
d) Rental is subject to GST after 01.04.2015 even the agreement sign before GST period
e) Claiming Paid Sales Tax after 01.04.2015 for conducting audited closing stock on 31.03.2015

8. Getting out from the GST
Required at least 2 years in order to de-register GST. Furthermore GST might subject to custom audit.

9. Delay without Payment to GST
Filling GST must submit together with the payment.

10. Quarterly submission might jam Cash Flow
Filling Quarterly GST would sum up 3 months GST payment, especially top sales is achieved on the 4th quarter of the year and submit on the January, closed to the Chinese New Year. Quarter 4 would be the highest GST payment submission if Quarter 4 of the year achieved represent the best Turnover period.

June 10, 2014

GST : Registration Particulars

Everybody become more aware that registration actually starts on 1st June 2014. So far not many people have attended the GST talks, which might cost above RM500 per person which is claimable under HRDF. For a smaller business, it could be a high price for a seminar, considered it as an expensive talk.

Anyhow, registration has started. There is an urgency for saying "must register before 31 December 2014", which I might suspect, there would be a delay on processing due to many unforeseen and foreseen circumstances which delay company to obtain a GST ID number.

To avoid such unnecessary delay, 6 months is quite a sufficient time to get things ready, especially GST ID to appear in the Tax invoices and to appoint authorized person to handle GST beside own boss him/herself.

GST registration form can be found with the link below.


GST registration online can be found with the link below.


Form involved for initially is GST-01. GST-01 would tell what are the appropriate form needed while filling the form. Due to the advances of Information Technologies, email address is needed from the Business Owner or Directors or Person in charge.

GST also request particulars of authorised person or person(s) to be registered in the form, which indicates who are the person in charge of GST for future GST audit or GST issue if arise. Particulars such as, name, I/C, email, telephone, fax, residential address, designation, appointed date, and signature are requested. Of course, those who handle full set of accounts might fit in into this category because handling GST matters at the same time.

Are we all ready for it?

Below is the Industry Codes (Piawaian Klasifikasi Perindustrian Malaysia 2008) for your findings on industry code in the Part D GST-01 form.

June 9, 2014

Life : Human Cancer in Top 10 List

I believe Life is short, life is full of expectation as well as un-expectation, so many things to handle and so many things to do. Looking back on our life, it is important to live our life meaningful, eat healthy and live healthy. The image above is found from internet after I wonder what type of cancer would I have if no steps or action is taken after living so many years. Though this topic seems not popular and not even listed in the normal book syllabus, but everybody would feel it in future.

A lot of ways to stay healthy with minimum expenses or at no expense at all, but people lazy to deal with that, as there are may other important things on hand to handle, such as personal matters, financial problems and business matters as well as no time.

During each stage of human age, it is more obvious that the older generation are talking about diseases, cancer, arrangement of memorial reservation space, getting a treatment, saving every money, eat healthy and exercise daily. While younger generation is about living uptodate in the sense of modern, high tech and in an entertaining context and having problem to cope with inflation and increase cost of living.

Everybody seems to have a timer or time-bomb on their hand, so am I. There are many talks organized by hospital or specific organization, but people tends to be more afraid to deal with this kind of "surprises" lies ahead and what and how to do with it after that.

Every talks is more alike is on the .....
a. The symptoms or the indicator
b. The risk factor or the causes
    - Genetics and Cancer
    - Tobacco
    - Diet and Physical Activities
    - Sun and UV Exposure
    - Radiation exposure
    - Environmental pollution
c. The treatment

Some left unaware that people are actually infected with hepatitis C due to their liver failure or liver cancer. So the flow is always becoming

The symptom = Diagnose = Treatment

The awareness = The symptom = Diagnose = Treatment

rather into

The awareness = Healthy Eating = Healthy Living

While healthy eating and healthy living always comes with a cost, discipline and responsible for our own health. People still lazy to prepare food on their own, or cook delicious food rather than healthy food. Therefore food restaurant has their share of $ from the people who spend money, while Gym or health centre with their monthly $ subscription coming from people who spend.

I do not think it would cost so much in order to stay healthy by doing it our ownself, exercise our own, cooking our own. But it would cost so much to spend in a one day hospital treatment with no 100% guarantee in any surgery, putting our hard earned money into the most expensive item in the world if you able to live beyond 60.

You are not alone here. I'm starting performing fitness myself without spending gym subscription.
Design my own physical look in a daily 30 minutes spread among 24hours daily routine, which is routine to slim which part of the body and looks healthy as if have gone to gym or fitness center.

There are many exercise resources from the internet to fill your time and expectation, so with the healthy cooking. Not forgetting healthy social with friends in sports is much easier to get through 30 minutes limit or perhaps more.

Join me if you wish to understand more, stevenglobal@yahoo.com because I am also not willing to sit down to listen about what type of cancer I am going to have in future, but I am willing to do something on that before it give a big surprises to me.

I'm finding resources to cope with is ever challenging environment. Would share resources to you if interested.