Kayu Furniture Sdn Bhd (KFSB) manufactures and sells living room furniture besides providing consultancy services to...

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Kayu Furniture Sdn Bhd (KFSB) manufactures and sells living room furniture besides providing consultancy services to design and remodel living rooms since the year 2000. The annual sales turnover for KFSB since the past five years have been around RM1,000,000. KFSB issued invoices and received payments as follows: Date invoice issued 15 September 2019 20 September 2019 10 October 2019 18 October 2019 23 October 2019 Date payment received (b) 18 September 2019 30 September 2019 15 October 2019 21 October 2019 28 October 2019 Amount (RM) 25,000 10,000 30,000 12,000 18,000 Business transactions Sale of furniture Consultancy service Sale of furniture Consultancy service Sale of furniture REQUIRED: State whether each of the business transactions performed by KFSB is taxable under the Sales Tax Act 2018 or Service Tax Act 2018. Compute the tax payable by KFSB for the taxable period of September and October 2019. Based on the tax payable for the taxable period as computed in (b) above, determine the penalty rate and compute the penalty due by KFSB if the tax payable was not paid until 31 March 2020. Kayu Furniture Sdn Bhd (KFSB) manufactures and sells living room furniture besides providing consultancy services to design and remodel living rooms since the year 2000. The annual sales turnover for KFSB since the past five years have been around RM1,000,000. KFSB issued invoices and received payments as follows: Date invoice issued 15 September 2019 20 September 2019 10 October 2019 18 October 2019 23 October 2019 Date payment received (b) 18 September 2019 30 September 2019 15 October 2019 21 October 2019 28 October 2019 Amount (RM) 25,000 10,000 30,000 12,000 18,000 Business transactions Sale of furniture Consultancy service Sale of furniture Consultancy service Sale of furniture REQUIRED: State whether each of the business transactions performed by KFSB is taxable under the Sales Tax Act 2018 or Service Tax Act 2018. Compute the tax payable by KFSB for the taxable period of September and October 2019. Based on the tax payable for the taxable period as computed in (b) above, determine the penalty rate and compute the penalty due by KFSB if the tax payable was not paid until 31 March 2020.

Answer rating: 100% (QA)

a To determine whether each business transaction is taxable under the Sales Tax Act 2018 or Service Tax Act 2018 we need to understand the scope of these acts Under the Sales Tax Act 2018 the sales of ... View the full answer