Fire Insurance Agent Giving Discount without CN

Buy  Fire insurance from an Agency.

Insurance Company ‘s Tax Invoice :
Insurance  –  100
GST            –   6
Stamp Duty   – 10

Total : RM 116.00

but Agency personally giving discount , and send a statement show payment amount is RM 100.00
Discount RM 16 is what tax code ?

Asked on October 17, 2017 2017-10-17 06:55:35 Consumer (消费者)
Add Comment
5 Answer(s)

-RM16 including tax.  Code is AJP. But agent must give you Credit Note, as it involves change in GST amount.

Answered on October 17, 2017. 2017-10-17 07:33:36
Add Comment

if agent dint issue Credit note, what i should do in my accounting posting for that RM 16?

debit :
Insurance RM 16

Credit :
Discount Received   RM 15.09
GST input  RM 0.91   (Tax code AJP )

Correct ?

Answered on October 17, 2017. 2017-10-17 07:42:23
Add Comment

No. You cannot adjust GST Input Tax without Credit Note from the supplier.

But you can assume the discount as portion paid by the agent, since the agent give discount himself, and not the Insurance Company. Right?

Answered on October 17, 2017. 2017-10-17 08:40:44
Add Comment

Yes, is not the Insurance Company giving me discount.

So means :

Debit
Insurance 100
GST 6  (Tax code : TX)
Stamp Duty 10

Credit
Cash/Chq  RM 100
Discount Received RM 16 (tax code : blank)

Correct ?

Answered on October 17, 2017. 2017-10-17 08:48:51
Add Comment

Yes.

Answered on October 17, 2017. 2017-10-17 08:56:48
Add Comment

Your Answer

By posting your answer, you agree to the privacy policy and terms of service.