Lect 1 Indirect Taxation
Advanced Taxation
Lecture 1
Indirect Taxation
2012
Dr Nakha Ratnam Somasundaram
Advanced Taxation
1
Indirect taxation
2012
Dr Nakha Ratnam Somasundaram - Advanced Taxation
2
Indirect taxation
• Indirect taxes consists of the following taxes:
–
–
–
–
Sales tax
Service tax
Excise duty
Customs duty
• These taxes are collected by the Director
General of the Royal Malaysian Customs.
2012
Dr Nakha Ratnam Somasundaram - Advanced Taxation
3
ROYAL
MALAYSIAN
CUSTOMS:
HTTP://WWW.CUSTOMS.GOV.MY
INDIRECT TAXATION
EXCISE DUTIES
SALES TAX
CUSTOMS
DUTIES
Dr Nakha Ratnam Somasundaram - Advanced
SERVICE TAX
2012
Taxation
4
Sales Tax
2012
Dr Nakha Ratnam Somasundaram - Advanced
Taxation
5
Sales tax
• One should understand sales tax in the context of the following:
– Scope of charge
– Single stage charge
– Sales value
– Transactions treated as ‘sales’
2012
Dr Nakha Ratnam Somasundaram - Advanced Taxation
6
Overview
Sales Tax
(1)
Business
Enterprise
(Licensed manufacturer) Sales Tax
(2)
Director
General of
Customs
Customer
IT, RPGT
Key Points:
Imposed on consumers,
•
Director General of Inland
Revenue
2012
Collected by business enterprise, and
•
Accountable to the Royal Malaysian
Customs and Excise
•
Dr Nakha Ratnam Somasundaram - Advanced
Taxation
7
Scope of charge
• Section 6 of the Sales Tax Act of 1972
• Sales tax shall be charged and levied on all taxable goods –
– manufactured in Malaysia; or
– acquired under the provisions of section 9 by a taxable person and sold, used or disposed of by him
(otherwise than by sale or disposal, to a licensed manufacturer authorized by the Director General to acquire such goods without payment of tax);
– Imported into Malaysia by any person for home consumption. 2012
Dr Nakha Ratnam Somasundaram - Advanced Taxation
8
Manufactured in Malaysia
• Section 2 – meaning of manufactured
– In relation to goods other than petroleum, the conversion by manual or mechanical means of organic or inorganic
Lecture 1
Indirect Taxation
2012
Dr Nakha Ratnam Somasundaram
Advanced Taxation
1
Indirect taxation
2012
Dr Nakha Ratnam Somasundaram - Advanced Taxation
2
Indirect taxation
• Indirect taxes consists of the following taxes:
–
–
–
–
Sales tax
Service tax
Excise duty
Customs duty
• These taxes are collected by the Director
General of the Royal Malaysian Customs.
2012
Dr Nakha Ratnam Somasundaram - Advanced Taxation
3
ROYAL
MALAYSIAN
CUSTOMS:
HTTP://WWW.CUSTOMS.GOV.MY
INDIRECT TAXATION
EXCISE DUTIES
SALES TAX
CUSTOMS
DUTIES
Dr Nakha Ratnam Somasundaram - Advanced
SERVICE TAX
2012
Taxation
4
Sales Tax
2012
Dr Nakha Ratnam Somasundaram - Advanced
Taxation
5
Sales tax
• One should understand sales tax in the context of the following:
– Scope of charge
– Single stage charge
– Sales value
– Transactions treated as ‘sales’
2012
Dr Nakha Ratnam Somasundaram - Advanced Taxation
6
Overview
Sales Tax
(1)
Business
Enterprise
(Licensed manufacturer) Sales Tax
(2)
Director
General of
Customs
Customer
IT, RPGT
Key Points:
Imposed on consumers,
•
Director General of Inland
Revenue
2012
Collected by business enterprise, and
•
Accountable to the Royal Malaysian
Customs and Excise
•
Dr Nakha Ratnam Somasundaram - Advanced
Taxation
7
Scope of charge
• Section 6 of the Sales Tax Act of 1972
• Sales tax shall be charged and levied on all taxable goods –
– manufactured in Malaysia; or
– acquired under the provisions of section 9 by a taxable person and sold, used or disposed of by him
(otherwise than by sale or disposal, to a licensed manufacturer authorized by the Director General to acquire such goods without payment of tax);
– Imported into Malaysia by any person for home consumption. 2012
Dr Nakha Ratnam Somasundaram - Advanced Taxation
8
Manufactured in Malaysia
• Section 2 – meaning of manufactured
– In relation to goods other than petroleum, the conversion by manual or mechanical means of organic or inorganic