Overseas company send us materials to process and then we will send back the materials once the process has been completed. we will bill them the labour charges (for the process we have done here), my questions as below:-
1. We should issue tax invoice for the labour charges with GST 6 %? or ZRE ?
2. What is the tax code in the accounting record?
This is a service provided to the overseas company and you should account for GST @ 6%.
The tax code, I think is the newly recommended by Customs : OS-TXM @ 0% – Out-of-scope supplies made outside Malaysia which will be taxable if made in Malaysia.
I suggest you consult the GST Officer at the Customs near your place because not everyone knows how to use the new additional tax code.