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Sales Tax Tutorial

This document contains 4 questions regarding the calculation of sales tax for various transactions in Malaysia. Question 1 involves determining the sales tax payable, tax period, and due date for 5 transactions: outsourced manufacturing services, sale of manufactured goods, import of goods with import duty, donation of goods to charity, and sale between subsidiaries. Question 2 requires calculating the sale value and sales tax due for a sale from Muji to Robin, and identifying the tax period and payment due date. Question 3 involves calculating sales tax payable for goods sold to a hotel, supermarket, and department store. Question 4 requires calculating sales tax for goods sold to a subsidiary and donated to charity, and explaining the

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60 views

Sales Tax Tutorial

This document contains 4 questions regarding the calculation of sales tax for various transactions in Malaysia. Question 1 involves determining the sales tax payable, tax period, and due date for 5 transactions: outsourced manufacturing services, sale of manufactured goods, import of goods with import duty, donation of goods to charity, and sale between subsidiaries. Question 2 requires calculating the sale value and sales tax due for a sale from Muji to Robin, and identifying the tax period and payment due date. Question 3 involves calculating sales tax payable for goods sold to a hotel, supermarket, and department store. Question 4 requires calculating sales tax for goods sold to a subsidiary and donated to charity, and explaining the

Uploaded by

premsuwaatii
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Sales Tax

Question 1

Determine the sale value, sales tax payable, taxable period, and due date for submission of
sales tax return for each of the following transactions. Assume that the sales tax rate is 10%
and all the companies involved are manufacturers of taxable goods under Sales Tax Act
2018 .

i. AXA Sdn. Bhd. (AXA) does not own the machinery required to complete certain
manufacturing process in its production. As a result, it outsources the process to All
Good Sdn. Bhd. (All Good), a manufacturing sub-contractor. At the end of January
2021, All Good billed AXA RM27,500 for its processing services for the month.

ii. Brutus Manufacturing Sdn. Bhd. (Brutus) has spent RM57,000 to manufacture its
taxable goods in February. Subsequently, it sold its manufactured goods to a major
retailer for RM84,000 on 14.03.2021.

iii. Caliph Sdn. Bhd. (Caliph) imports taxable goods from Jordan to be sold in its
Malaysian stores. In 20.09.2021, Caliph had imported goods totalling RM42,600. The
goods are subjected to 20% import duty.

iv. Dandelion Sdn. Bhd. (Dandelion) has been active in CSR activities. One of the
activities, which took place on 16.06.2021, involved Dandelion donating its goods to
registered charitable institutions in Kampar, Perak. The goods costed RM24,000 to
manufacture and had a market value of RM32,000.

v. Emergence Group Bhd. consists of a listed holding company and twenty subsidiaries.
The companies in the group transact with one another on a regular basis. On
02.08.2021, one of the subsidiaries, Fax Sdn. Bhd. (Fax) made such a sale to another
subsidiary in the group. The transfer price was RM127,500. At the same day, Fax
made a similar sale to an independent buyer in the open market for RM120,000.

Question 2

Muji Sdn. Bhd. (Muji) has been manufacturing furniture for many years and is a sales tax
registrant. Muji charges a 10% mark-up on the costs and overheads of its products. Muji
closes its accounts annually on 31 December.

On 30 May 2021, Robin Sdn. Bhd. (Robin) raised purchase order to acquire taxable goods
from Muji. The order was delivered on 31 August 2021 and invoice was issued on 2
September 2021 to Robin. Robin made payment on 30 November 2021 to Muji.

Details relating to the sales made to Robin are as follows:

RM'000
Total direct manufacturing costs 69
Indirect marketing and distribution costs/overheads 33

1
Required:

i. Compute the sale value and the sales tax due on Muji Sdn. Bhd.’s sale to Robin Sdn.
Bhd. Assume the sales tax rate is 5%.

ii. Ascertain the taxable period and by when Muji Sdn. Bhd. should remit the sales tax to the
Royal Malaysian Customs Department.

Question 3

Super Sdn Bhd, a manufacturer of household products, sold taxable goods to the following
places in Sept 2021:

Sales value
RM
Hotel in Langkawi 60,000
Supermarket in Philippines 250,000
Departmental store in Sabah 400,000

Assume that the sales tax rate is 10 %

Required:

a) Compute the amount of sales tax payable if any in respect of each of the above
transactions
b) State when the sales tax is due for payment

Question 4

Mayo Sdn. Bhd. (Mayo), a manufacturer of taxable goods, sold taxable goods to the
following places in year 2021:

On 3 May 2021, Mayo sold taxable goods to its subsidiary company, Tintin Sdn. Bhd.(Tintin)
for RM170,000. The market value was RM190,000. In response to a request from a charity,
Caring House, Mayo donated a carton of taxable goods costing RM6,500 whereby the market
price was RM10,000 on 12.12.2021. Assume that the sales tax rate is 10%.

Required:

2
i. Compute the amount of sales tax payable (if any), taxable period and due date of sales
tax payment for transaction (i)-(v).

ii. Prepare explanation in determining the sales value with regard to the taxable goods sold to
Tintin and the taxable goods donated to Caring House.

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