• Service Tax
• Sales Tax
• Changes in the SST 2024 from 6% to 8%
• Expansion Scope For 5 Areas

1. Construction Work
2. Rental and Leasing Services
3. Private Education Services
4. Private Healthcare Facilities
5. Financial Services

 

• Registration

1. Threshold and its determination – what is in and what is out & how is future method calculated.
2. 20 Activities that do not require to be registered under the Sales Tax Act.
3. Understand the Single Taxable person concept
4. Registration Cancellation and its deemed sales under sales tax and deemed collection under the service tax.
5. Transfer of Going Concerns under Sales Tax
6. Key Responsibilities of a Registered Person.

 

• Sales Tax Implementation

1. Taxable areas and its valuation for tax purpose for 3^rd party and inter-company transactions.
2. Definition of Manufacturing and resolving its dispute on its meaning.
3. HS Code / Customs Tariff Code and the Determining the Rate of Tax.
4. Types of exemptions under the exemption orders:

1. Goods exempted from charging sales tax
2. Persons exempted from paying sales tax – terms and conditions:.
   1. Schedule C –
      • Registered Manufacturers (RM) purchase direct,
      • Registered Manufacturers (RM) purchase through 3^rd parties
      • Registered Manufacturers (RM) sub-contracting work out:
        • Between RM to RM in PCA areas
        • Between RM and non-RM in PCA areas
        • From Special Areas and Designated Areas to PCA Area
        • From PCA areas to Special Areas and Designated Areas
        • Criteria MUST meet to qualify for exemption under C5.
   2. Schedule B – Non- Register Manufacturer on their production of 4 specific sales tax exempted goods.
   3. Major Exporter Scheme
   4. Schedule A – Other categories of person and its conditions requirements.
   5. Machinery and spare parts exemptions – be careful of wrong advice given even from customs stations.
3. Quarterly record keeping and periodical reporting requirements for goods under exemption.
4. Procedures on sales tax treatment on scraps at different stage of production and finished goods.

2. Sales Tax Credit Systems.
3. Treatment for goods movement within, to and from:
   1. Designated Areas (duty free areas), and/or
   2. Special Areas
4. Definition of Export and its documentation criteria requirements.
4. Sales Tax drawback facilities vs Schedule A item 57 exemption.

 

• Service Tax Implementation

1. Service Provider and its categories of the 13 grouping of Taxable services
2. Scope of taxable services in each category / group and when is Rental, recovering of cost including electricity, water, etc. subject to service tax.
3. Service tax treatment for special transactions such as:
   1. Construction Work
   2. Rental and Leasing Services
   3. Private Education Services
   4. Private Healthcare Services
   5. Financial Services
4. Treatment of imported services requirement by all businesses including Non-SST register companies and its exemptions.
5. Service Tax treatment on Inter-Company Professional Services and definition of group companies AND when are these services taxable also to Group Companies.
6. Treatment for services provided within AND to and from:
   1. Designated Areas
   2.    Special Areas

 

 

• Accounting Administration

1. Invoice, Debit Note and Credit Note:
   • Standard prescribed particulars requirement.
   • Prescribed particulars requirements to person exempted from paying service tax.
2. Filing of Returns & correction of errors – supplementary returns.
3. Bad Debt Relief criteria
4. Refund on SST over paid
5. Service Tax contra system.
6. Annual Audit Certificate requirements

• Pitfalls to avoid for Sales Tax and Service Tax implementation
• Audit coverage and awareness

 

Module 3 - Health Check for Customs Audit Preparation

• Appeals

 

Module 4 - Expension Scope Of Service Tax (Group H,I,K,L,M)

• Construction Work
• Rental and Leasing Services
• Private Education Services
• Private Healthcare  Facilities
• Financial Services