This post is a continuation of previous post related to How to classify your taxable service value in Service Tax Act 2018? (Part 2).
What is Group G - I?
Grouping for group G to I is as below
|
Groups
|
Description |
Person |
Taxable services |
Threshold (RM) |
|
G
|
Profissionals
|
1) Advocate and solicitor
2) Syarie lawyer
3) Public accountant
4) Surveyors, e.g. valuers and appraisers.
5) Engineer
6) Architect
7) Consultancy services, excluding research companies and institute of Promotion of Investments.
8) Person providing Management services, excluding management service provided by the developer, joint management corporation, asset and fund manager.
9) Employment service provider
10) Private agency
|
a) Legal services
b) Legal services on Islamic matters.
c) Accountancy services.
d) Surveying services.
e) Engineering consultancy.
f) Architectural services including consultancy services.
*Services a to f: excluding services in connection with subject matter relates to country outside of Malaysia and any statutory fees paid.
g) Professional consultancy services, excluding services relating to medical and surgical treatment provided by private or specialist clinic.
h) Management services.
i) Employment services.
j) Security services.
*Services g to j: excluding services in connection with subject matter relates to country outside of Malaysia.
|
500,000 |
|
H
|
Credit card and charge card |
Person regulated by Bank Negara Malaysia that provides credit card/charge card services. |
Credit card or charge card services where there is annual subscription, excluding:
i) charge card issued by petroleum company in connection with vehicles.
ii) charge card services that is only used within the premises of a workplace or institution or clubs.
|
500,000 |
|
I
|
Other service providers |
1) Insurer and takaful operator.
2) Person providing telecmommunication services and paid television broadcasting.
3) Agents given permission under the Customs Act 1967.
4) Person who operates or provides parking spaces.
5) Person who operates motor vehicle service or repair centre.
6) Person who provides courier services.
7) Person who provides hire-and-drive passenger motor vehicle and hire-car services.
8) Person who provides advertising services.
9) Person providing information technology (IT) services.
10) Person provides transmission and distribution of electricity.
11) Person who is granted air service licence.
|
1) Insurance contract or takaful certificate to an individual or business organization, excluding:
2) Paid television broadcasting and telecommunication services, excluding provisions of services to another telecommunication service provider in or outside of Malaysia.
3) Services for clearing of goods from customs control.
4) Parking spaces for motor verhicles where charges are imposed.
5) General servicing.
6) Courier delivery services of documents or parcels, excluding delivery services related to places outside of Malaysia.
7) Hire-and-drive or hire-car services.
8) Advertising services.
9) IT services, excluding sales of goods in connection with IT services and IT services in connection with subject matters relating to outside of Malaysia.
10) Electricity services to domestic consumers.
11) Passenger air transport services excluding services related to places outside of Malaysia.
|
500,000 |
For group G to I, the definition on taxable services is only for those person mentioned, and that they are providing the taxable service mentioned in the taxable services column will be liable to register SST if the value of their taxable services exceeds the threshold.
The calculation of value of taxable services for Group G to I is calculated separately (for further detail on what each group comprises of, please refer to the custom's official guide). However, the taxable services within the same group will still need to be combined as a total value of taxable services under the group and if exceeds the threshold for registration within a 12 months period, the person will be liable to register under the Service Tax 2018.
For example:
Example 1
See Sdn Bhd provides accounting services (Group G) and IT services (Group I). The service value for accounting service is RM600,000 and IT service is RM300,000. The calculation for value taxable service will be Group G equal to RM600,000 and Group I (equals to RM300,000). See Sdn Bhd will only be liable to register for providing Group G services but not for Group I as only services under Group G exceeds the registration threshold of RM500,000.
Example 2
Tee Sdn Bhd provides engineering services (Group G) and architectural services (Group G). The service value for engineering services is RM400,000 and architectural services is RM350,000. The calculation of value taxable services will be combined as both are under the same group - Group G (equals to RM750,000). Tee Sdn Bhd will be liable to register for both engineering and architectural services provision.
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