Tax invoice on retention

Hi, my subcontractor issue a tax invoice to me(including 6% gst) on 15/Oct/18 for the project retention which is already completed on year 2017  .Is it allowed to do this ?

Asked on October 15, 2018 2018-10-15 08:27:50 Business (商家)
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Director General’s Decision on SST 1/2018

The Royal Malaysian Customs Department has released the following Director General (DG)’s Decisions dated 7 September 2018 which was loaded on their website on 8 September 2018:

·     Item 1: Issuance of tax invoice on or after 1 September 2018

·     Item 2: Declaration of importation by Licensed Manufacturing Warehouse (LMW)

·     Item 3: Retention payments (GST Transitional Issue)

Please refer to the DG’s Decision for further details.

For Invoice issued before 1/9/2018 :

A Contractor is only allowed to issue a tax invoice relating to the retention sum before 1/9/2018 and account and pay for the output tax in his return for the last taxable period which is not later than 120 days from 1/9/2018 according to section 6(2) of the Goods and Services Tax (Repeal) Act 2018. However, a contractor is not allowed to issue a tax invoice on or after 1/9/2018. If a Contractor issues the tax invoice to the developer before 1/9/2018 and if the input tax is allowable then developer is entitle to make such input tax claim in his return for the last taxable period.

For Invoice issued before 1/9/2018 :

A Contractor may issue an invoice for the retention sum on 15/10/2018 but he is required to account and pay for GST on the retention sum in his return for the last taxable period which is not later than 120 days from 1/9/2018. However, the developer is not allowed entitled to claim input tax relating to the retention sum.

Answered on October 15, 2018. 2018-10-15 09:08:34
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