Worker salary is should be charged 6% sst or without sst

Hi, hope somebody can assist me in this question. My company is doing business as an agency, which mean by i supply my foreign workers to outside client to do the work. My question is for them salary, am i need to charges my client 6% ? let’s say the worker salary is RM1K, contract charges is RM300.
For issue the invoice, i should lum sum 1300+6% or just 300+6% ?
My auditor said the salary should be billed client 6%, because i’m the one who supply the worker, this is reimbursement.
I’m very confusing now, salary is not my service, and also not my income, how should i can charges client ?
Thank you all for the helping.

Asked on November 30, 2018 2018-11-30 02:34:06 Business (商家)
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1 Answer(s)

Your auditor is correct. If you are a taxable person then you have to account for Service Tax @ 6%. Service tax is only applicable on employment services made or provided in Malaysia.  Employment services provided for job outside Malaysia is not subject to service tax.

Answered on December 1, 2018. 2018-12-01 06:53:43
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