Service Tax Awareness

Many service providers in Malaysia are unaware that they may fall within the ambit of “taxable person” and in “the business of providing a “taxable service” under the Service Tax Act, 1975 (“STA”).

“Taxable person” means any person who is prescribed to be a taxable person and “taxable service” means any service which is prescribed to be a taxable service. The Second Schedule of the Service Tax Regulations, 1975 (“STR”) prescribed various categories of taxable person and taxable services for the purpose of the STA as divided into Groups as follows:-

Group A – Hotels;
Group B1 – Restaurant Located In Hotel Having More Than 25 Rooms;
Group B2 – Restaurant Located In Hotel Having 25 Rooms Or Less;
Group C – Restaurant Located Outside Hotel;
Group D – Night-Clubs, Dance Halls, Cabarets, Health Centres, Massage Parlours, Public Houses And Beer Houses;
Group E – Private Clubs;
Group E1 – Golf Course And Golf Driving Range Other Than Those In Groups A And E;
Group F – Private Hospitals; and
Group G – Other Service Providers.

Click here for detail list of “taxable person” and “taxable services”.

A “taxable person” who is in the business of providing a “taxable service” and having a total annual sales turnover (12 months rolling) as prescribed in the STR (the above website is refers) is required to apply for a service licence under the STA from the Customs Department and charges service tax of 5% accordingly. Should it be less than the prescribed threshold, the service providers would be relieved from being treated as a “taxable person”.

Total annual sales turnover is calculated based on entity and not according to branches. Total annual sales turnover for all the “taxable service” under the same Group is to be combined if the service providers are providing more than one “taxable service” under the same Group. Once the total annual sales turnover has reached the total annual sales turnover as prescribed in the STR, service tax licence must be applied.

To apply for a service tax licence, obtain a service tax license application checklist from the nearest Customs Department where the service providers’ business is located as the service tax licence application checklist may be vary depending on the Customs Department (e.g. if the service provider is running a business in Petaling Jaya, service tax licence checklist from Customs Kuala Lumpur is to be obtained). Prepare and furnish all the relevant documents as required in the checklist to the respective Customs Department. Service tax licence should be ready in a few weeks time.

Click here for the service tax licence checklist from Customs Kuala Lumpur.

Once the service provider is license under the STA, the service provider is required to submit bi-monthly service tax returns together with the payment of service tax to the Customs Department within 28 days after the end of the relevant taxable periods (two calendar months, whereby first taxable period is determined by the Customs Department). Service provider is still required to submit a return even there is no service tax payable for the relevant bi-monthly taxable period.

Late payment penalty of 10% would be imposed if the service tax returns together with the corresponding service tax payments are not submitted to the Customs Department within 28 days after the end of each taxable period. Further late payment penalty of 10% would be imposed for every subsequent 30 days period in which the service tax remains unpaid up to a maximum of 50%;

All service providers in Malaysia that potentially in the business of providing a “taxable service” under the STA, seek clarification and confirmation from the Customs Department now before a fine not exceeding RM5,000 is imposed and/or imprisonment for a term not exceeding 2 years for failure to apply for a service tax license as required by the STA.

Visiting the UK

With all the commotion about more Malaysians being denied entry into Britain due to many cases of overstaying, illegally working, drug mules, those who sincerely want to visit the GB suffer. It was reported in the news that approximately 150-200 Malaysians are denied entry and deported. The British immigration might even implement an entry visa for visitors. Currently, Malaysia being a Commonwealth country, we do not require a visa to visit the UK. Lucky us, for now.

Refer to the following article if you have been hiding in a cave or under a rock somewhere and have no idea what's going on:-

About 200 Malaysians Denied Entry Into United Kingdom Each Month - Syed Hamid - Bernama, 5 July 2008

TAIPING, July 5 (Bernama) -- An average of 150 to 200 Malaysians are denied entry into the United Kingdom (UK) each month following a move by the British government to tighten the entry of Malaysians into the country.

Home Minister Datuk Seri Syed Hamid Albar said the British government had sent a notice to Kuala Lumpur at the end of last year informing that it was ready to tighten the rules against Malaysians if there were still violations of the British immigration laws committed by them.

He said among the offences committed by Malaysians were overstaying and engaging in employment.

Syed Hamid however said he hoped that the measure would not be implemented at the moment.

"We are urging Malaysians to abide by the rules and regulations. We don't want Malaysians who really need to travel to Britain to be at a disadvantage," he told reporters after visiting the Kamunting Detention Centre here Saturday.

He said at the moment, Malaysian travelling to United Kingdom would be given visa on arrival (VOA) that allow them to stay in the country for six months.

He also said the harmonious Malaysia-United Kingdom relations could be affected if the problem persisted.

The British government viewed the matter seriously and would take stern action to resolve the problem, he added.

Syed Hamid pointed out that the problems created by Malaysians in the United Kingdom were similar to those created by foreigners who came to Malaysia under the VOA facility but ended up abusing the privilege.

During the visit, Syed Hamid also toured the facility and met three Hindraf leaders who are detained under the Internal Security Act.

Anyway, the point I was getting at is I did some researching and came across the following (helpful!) information to ensure you take all precautions prior to travelling.

According to the UK Border Agency

1. To visit the UK, you must ensure and be able to prove the following:-
   
   
   
   • only want to visit the United Kingdom for up to six months;
   
   
   • plan to leave the United Kingdom at the end of your visit;
   
   
   • have enough money to support and accommodate yourself without working, help from public funds or you will be supported and accommodated by relatives or friends;
   
   
   • do not intend to charge members of the public for services provided or goods received;
   
   
   • do not intend to study; and
   
   
   • can meet the cost of the return or onward journey.



2. The following documents are required (on top of your necessary travel documents - passport, ticket) to enter the UK as a visitor. They are:
   
   
   
   • a letter from your employer granting leave of absence from your job for a specified period. The letter should also say how long you have been employed by that employer, in what job(s) and should indicate when you are expected back at work;
     if you are self-employed, evidence of your business activities and financial standing;
   
   
   • evidence of any property you own in your home country;
   
   
   • if you are a student, a letter from your school or college stating which course you are on, its start and finish dates and the dates of the holiday period during which you intend to visit the United Kingdom;
   
   
   • it will also help if you can show that you have family or social ties and responsibilities to return to;
   
   
   • evidence of any firm travel plans you have made;
   
   
   • bank statements going back over a period of several months; and
   
   
   • evidence of savings available to you.

Well, before you leave, make sure you have satisfied most if not all of the above. It pays to be cautious. I have read of a few cases of Malaysians and non-Malaysians being denied entry because they didn't come prepared with the required documents. So... plan early and have a great holiday!

All smiles, no tears!

Little Black Book

They've just updated their blog and some of their dresses aren't too bad. Though there was a dress that was questionable. It's a black tube with a butterfly on the crotch area. Errrr.. wouldn't that attract unwanted attention to the wrong area?



I did like the last three dresses. They would go so well with skinny jeans or some leggings, don't u think?

Check it out here

Been looking through some fashion in the US and noticed that the retro kaftan dresses are in there. Wonder if Malaysia will catch on. Hmm.. or maybe it's just too hot to be wearing a long dress over here.

Dinner dresses with empty wallet

Congratulations, to all new couples! Wedding season is just around the corner. Receiving several wedding invitations is not something surprising. Have anyone thought of attending wedding may be costly as hundreds are spent especially in dressing up. Traditionally, I will go boutiques in shopping complex for dresses but the cheapest and good one cost me a minimum of about RM100. Few weeks back, while I was doing internet browsing, I found a few dresses which I think I can now “Invest Less but Beautiful”. Happy! ;P



RM39 - Krissu Fashion






RM34 - Krissu Fashion

Mamma Mia!

Upcoming movie, a must see!! Release date according to Yahoo!Movies is 18 July 2008.

But these are the Malaysian release dates:-

• GSC - 18 September 2008


• TGV - N/A


• Cathay Cineplex- 18 September 2008

ABBA's Mamma Mia - The theme song of the movie


The movie is based on the musical, Mamma Mia!, incorporating most of ABBA's hit songs (i.e. Mamma Mia, Dancing Queen, Gimme Gimme Gimme, etc.). It is a tale about love, friendship and loads of laughter. Set on a paradise of a Greek island, a young lady sets to discover the identity of her father. She eventually narrows it down to 3 men from her mother's past and brings them back to the island.

I watched a couple of the trailers and the setting is so joyous and colourful. It looks so perfect and beautiful. The movie looks so energetic and vibrant.. I can't wait!!

Check out the movie website here.

Trailers are available on Yahoo!Movies

One stop fixed deposit interest rate comparison

I always heard people saying that this bank has a higher fixed deposit rate compare to that bank and that bank has the highest fixed deposit rate. But, I just don’t have the time to check it out from bank to bank. Recently, I discovered a site that shows fixed deposit rate comparison among banks. Hope it helps!

RM10 price buster value meals promo @ Secret Recipe

Fight the inflation blues!

Introducing Secret Recipe’s RM10 Price Buster Value Set Meal!