Entertainment expenses, travelling expenses and gift rule GST
I would like to know:
1) Let’s say, my company provides all the expenses including meal, transport, hotel to employees for business trip. Can I fully claim input tax? Are these transactions included in gift rule?
2) Let’s say, 3 employees claimed entertainment expenses for having meal with client of RM 1,500. Can I claimed input tax fully? Should this transaction follow gift rule? If so, can I recognise it as RM 500 for each employee to let it under gift rule?
3) Let’s say, I am a subsidiary company of an oversea company, and I request an employee from parent company to come Malaysia for business purpose. I am fully responsible for his expenses in Malaysia but do not spend any salary or service charge to him. How to treat this condition in accounting, GST and tax purpose?
1. You can only claim input tax credit if those tax invoice or simplified tax invoice which are under the name of the GST registered person.
2. You have to segregate out the entertainment expenses between input tax claimable and blocked item.
3. What is the nature for that employee from your parent company in Malaysia?