Download our registration form
Introduction
From the year 2024, service tax rate increased from 6% to 8% for many types of taxable services and widening the scope of taxable services, e.g. logistic services.
In other words, this may indicate that GST will not be reinstated in the near future. It is time to look into your SST compliance history and records because your business should have submitted many SST returns to Customs since 1st September 2018 when SST was reimplemented
The Customs department will perform more often and thorough audits to ensure the registrants are declaring and paying the precise amount of tax which they should (Ikrar Betul, Bayar Betul). In order to achieve this, the registrants need to apply the correct SST treatment and be prepared for the upcoming SST audit.
Impact on businesses can be major if you are not well prepared to ensure your business activities are SST compliant. Businesses should start reviewing their return and records because SST is a transaction based self-compliance tax system and heavy penalty is imposed upon failure to comply with the rules and regulations.
- Module 1.1: SST audit framework
- SST auditors’ roles and responsibilities
- Auditors and auditee’s right
- Manner and time frame of an audit
- Evidence and supporting documentation required
- Module 1.2 SST Field Audit Process and gap analysis
- Field audit, the do and don’t, e.g. no gift policy
- Identify the gap and look for rectification procedures to close the gap
- Module 1.3: Hot areas of audit
- Late registration due to other taxable services
- Verification of IT services exemption according to relevant order
- B2B exemption verification
- Examine whether the vendors/customers are registered in the right group to enjoy the exemption? Consequences for services registered in the wrong group
- Agreement duly stamped and its timing?
- Determination of non-taxable income (goods and services)
- Same group of companies exemption (relief) whether applicable to IT industry?
- Verification of invoice and adjustment notes content (including e-invoice requirement)
- SST-02 form declaration (item 18 c and 18 d)
- Back charges and payment on behalf subject to service tax?
- Check the services provided between or within the Designated Area and Special Area
- Module 1.4: IT VS construction projects
- Treatment for installation, wiring, demolishing, and integration works.
- Check on IT project’s retention sum SST due date
- IT project progress claims and time of project completion (work done)
- Module 1.5: Foreign Registered Person (FRP) and imported services
- The importation of IT services from FRP and non-FRP
- Eligibility to offset against the local customers’ services tax collected
- Group relief treatment for imported services
- Module 1.6: Service Tax Back Taxes and Penalty Appeal Process
- Compute potential liabilities and back taxes discovered
- Appealable matters
- Parties and timing of the appeal
- Group Exercise: Fill up the form of appeal
- Choose the best appeal channel
- Advantages of the Voluntary Disclosure (VD)
- Jointly and several liabilities of directors
Q & A Session