Tax Invoice 6%
I want to ask regarding tax invoice. One of our (local) customer buy our product, our company located inside Free Industrial Zone (FIZ). They did mention that our tax invoice shouldn’t put tax 6% (SR) and replace to commercial invoice because when they want to export out our product, they will pay 6% gst at custom clearance gate. Is it true how its work? because they say they will double pay if I put 6% tax in invoice
All supply of goods by a company operating in FIZ or having LMW status to another company in PCA who is not operating in FIZ or not having LMW status are subject to GST. GST is chargeable in the tax invoice and pursuant to Paragraph 7 Third Schedule GST Act 2014, the value of the goods must be the aggregate of the following amounts as provided under section 16 of the same Act:
(a) the value of goods for the purpose of customs duty;
(b) the amount of customs duty paid or is to be paid, and
(c) the amount of excise duty paid or is to be paid.
Since your local customer is going to export those product, it is not subject to GST (ZRE).