October 14, 2014

GST : Zero Rated Supply & Exempt Supply



After the annoucement of the Budget 2015, everyone are looking forward what are the newest list of Zero Rated and Exempt Supply Goods and Services for this coming GST.

The following items have been highlighted either for Zero Rated or Exempted :-
Essential services, transport, education, healthcare and finance,RON95 petrol, diesel, liquefied petroleum gas, imported and local fruits, bread, coffee, tea and cocoa powder, noodles, medicines as well as reading materials and newspapers.

For the complete list, kindly click the following:-

Zero Rated Supply List

Exempt Supply List

Relief List

The whole portal click : Federal Government Gazette


However, you may reach the same information at GST website.
Click http://gst.customs.gov.my/en/rg/Pages/re_odr.aspx

Let's get ready.


September 13, 2014

GST : What is GST Compliance Software?


Not everyone is noticing that GST compliance software, is basically written for GST, with the integrated functionality for Custom department for easily checking and auditing for seven years of records at least.

GST has instructed the following General Principles guidelines :-



From the item(s) above, you may notice item (h) is enabling the software to export data into GAF for custom into checking or auditing procedure. While item (e) is to enable tracking down who and when (date and time), the addition record, modification, and deletion of the data has been made in the full set of accounting system. In Accounting, Sales, Gross Profit Margin, Closing stock, Unit price of the Product is a very sensitive data in the software itself.

Let's look at the following popular SME software in the market, AutoCount, QnE, UBS, SQL Accounting and Million Accounting System.









These particular softwares are capable to support Custom to track down any unexpected event happen within the business or the organization. Of course, the business owners really need to know and monitor their business figure well enough to support the accounting team, as accounting team itself might change its own staff over time. The business owner must verify the figure before any submission of GST and Income Tax. While not forgetting, the software above need to be locked so that no modification is allowed after the GST and Income Tax submission.

Contact me for futher details : stevenglobal@yahoo.com

August 26, 2014

IRB : Tax Evaders




Tax evaders – would have difficult time leaving Malaysia until they have paid their dues at the airport. Enforcement from Immigration Department to assist the IRB (Income Tax Department) for tax collection has put the Income Tax 1967 (Act 53) into an active mode.

Those blacklisted either for the purpose leaving Malaysia for leisure, business or migration, the no exit order will apply to all tax offenders. If this is a proven effective way, no doubt they might consider coming GST defaulters or GST evaders as well.
The Travel Status could be found under the following website.
Income Tax website also referring immigration website.

August 22, 2014

GST : Process after Registration

GST once register, you would access the GST portal or website with your login password. You may find the following letter in your inbox.


You may also take note that there would be no "kesilapan" and "kehilangan" tax invoice from the same letter.

Therefore everything is rules and law. You may apply GST-eVoucher worth RM1000 after getting GST ID. 

You may click http://gst-evoucher.smecorp.gov.my/gst/ for their website under SME. 
http://gst-evoucher.smecorp.gov.my/gst/


The process flow would be like this,

a) Register GST, obtain GST ID.
b) Go to the SME website to search for details.
c) Go to GST software vendor, fill up some form, pay on the spot the original price.
d) Get the receipt, proof of payment or supporting documents.
e) Claim GST E-Voucher, which would bank RM1000 into the company bank accounts once approved.

There are terms and conditions after GST e-voucher has been received. During this GST e-voucher claiming, the Custom or SME bank would know who is using which GST program. I would suspect just in case, if there is no use of such program in your respective company, they would probably "tarik-balik" e-voucher in near future, although it does not mention, but they did mention use it for GST, if you are not using it, why would you claim it.

During the registration, you may need to give them your Profit and Loss Account 2013 and Company Latest EPF statement.



Since SMECorp has their own website, and registered individuals has their own password, we might experience that each year, we need to submit profit and loss accounts and latest KWSP for their record keeping as well as for updating their system. As years pass by, I'm sure they do not want to keep old records.



July 18, 2014

GST : Getting a GST Consultant?



Time is running short. GST, Income Tax, Government Bodies, BNM, Immigration, Kementerian Perdagangan dalam Negeri Koperasi dan Kepenggunaan (KPDNKK), all are teaming up together to get the things done which is to improve data and tax collection.

For an example,



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.



Therefore by getting a GST consultant, you have to be extra careful that they might not know what you want, but to mess up your whole business operation in order to cope with GST.

For GST operation, it requires custom-made functionality 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, but to let him/her to attend GST courses.

Of course, if you are late, let's say Jan 2015 to start to understand how GST flow, it is actually no time for both parties to understand and to communicate each other, as Government is implementing shorter and shorter time for GST.

Think carefully, a real GST consultant should make your business operation flow smoothly through the period of preparing and implementing the GST. However, without understanding GST and sufficient time for prepration, GST consultant have chance and opportunity to reject the offer.

Anyhow, getting a GST consultant need to have
a) IT GST Software knowledge
b) GST knowledge
c) Business Operation flow knowledge
d) Accounts knowledge
e) Finance knowledge
f) Industry knowledge

which I notice it is very hard to find. It's an opportunity for Custom to build their strength while these weaknesses appear all over the place in the companies.