Buying Parking Lot without Tax Invoice but with agreement

Our company is buying parking lot at basement of our building with the developer. We are dealing this with S&P agreement coz it will become our asset. My Question is;

1) Do we need to ask for tax invoice or the agreement can used to claim the GST.

2) This parking lot need to be report as Capital Good in GST03 right?

Asked on July 17, 2017 2017-07-17 02:02:47 Business (商家)
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3 Answer(s)

Basically, the GST is chargeable on any supply of non-residential land regardless relates to the supply of goods or services. The GST is chargeable on such supply (the sale or lease of non – residential land) and shall be accounted as output tax in the GST returns.
The same treatment applies for provision of parking facilities supplied in the non-residential property. The developer or the owner of the building are required to charge GST when such parking facilities is sold or leased. The GST chargeable on such sale or lease shall be accounted as output tax in the GST returns. Hence these 2 determining factors must be fulfilled;-
(a) the parking is within or on the premises, reasonably close, or within a complex (for example, an industrial park made up of separate units with a ‘communal’ car park for the use of tenants of the units and their visitors), and
(b) it is intended to be used in conjunction with the commercial premises.
the case involving leasing or letting of non-residential land, supply of such parking facilities is taxable supply regardless whether such land be lease under an agreement that includes the provision of parking facilities or such agreement includes an obligation on the tenant to accept a later grant of parking facilities if or when they become available or not. GST treat such supply as two separate supplies:-
(a) supply of leasing of the commercial property
(b) supply of parking facilities
In the case where such supply of parking facilities is ancillary to the supply of non-residential land, also GST treat such supply as 2 separate supplies:-
(a) supply of non-residential land
(b) supply of parking facilities
GST are chargeable on such supplies at standard rate.
For residential property which is used as home office (for example, Small Office Home Office), the taxability of the property will depend on the approved use of the building in the Approved Layout Plan and “surat kebenaran merancang”. If the building is approved for “residential use”, the sale and lease of the property will be exempt. However, if the building is approved for non-residential use such as “office use”, the sale and lease of the property will be taxable.

If you want to capitalize the parking lot it is up to your company accounting policy.

Answered on July 19, 2017. 2017-07-19 09:19:29
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Your explaination is very easy to understand. Thank you for that. One more question, Is it enough with S&P agreement. No need to produce Tax Invoice?

Answered on July 20, 2017. 2017-07-20 07:39:41
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If you intend to claim input tax credit, then you need a full tax invoice.

Answered on July 20, 2017. 2017-07-20 08:25:04
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