Compute the withholding tax (if any) on the payment for the technical services rendered by Jarden and also Compute the sales tax payable on the above sales transactions. State when the sales tax is due for payment under Sales Tax Act 2018. The accountant of SESB paid the sales tax due on 12 August 2021.

 What would be the total amount payable including the penalties?

What is sales tax chargeable under the Sales Tax Act 2018?

  Seremban Electronics Sd Bid (SESB) is a manufacturer licensed under the Sales Tax Act 2018. The company has been in operation for several years.

 The company recorded the following sales to numerous places in March 2021:

 

         

Sales	RM
China	300,000
Labuan	400,000
Langkawi	125,000
Selangor	180,000

The rate of sales tax applicable to taxable goods is 10%.

(c) In 2021, Instead Sd Bid (Instead), being a Malaysian company, purchased a machine from Jarden Ltd (Jarden), non-resident Malaysian company. Jarden provided technical services to Instea amounting to RM40,000 with regard to installation of a machine in Malaysia. 

 

Required: (i) Provide reasons as whether the amount of RM40,000 is subject to withholding tax. Under which class of income it falls into (if withholding tax is applicable).

 

 

Answer rating: 100% (QA)

Withholding Tax on Technical Services Payment in Malaysia nonresidents providing services like technical assistance are subject to a 15 final withhold... View the full answer