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.
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.