This post is a continuation of previous post related to How to classify your taxable service value in Service Tax Act 2018? (Part 1).
Please visit above blog for more details.
What is Group A - F?
Grouping of A to F is as follow:
|
Groups
|
Description |
Threshold (RM) |
|
A
|
Accommodation |
500,000 |
|
B
|
Food and Beverage |
1,500,000 |
|
C
|
Night Clubs, Dance Halls, Health Centres, Massage Parlours, Public Houses and Beer Houses |
500,000 |
|
D
|
Private Club |
500,000 |
|
E
|
Golf Club and Golf Driving Range |
500,000 |
|
F
|
Betting and Gaming |
500,000 |
Table shows description and examples for Group A to F
From the table above, you can notice that Food and Beverage sector have a higher threshold level for taxable service value. For Group A to F, the value of taxable services will be combined to calculate whether it has reach the threshold leve. Meaning, although you may provide 3 different types of services, but if they all fall under group A to F, you will need to sum them up to determine whether you need to register SST for these taxable services. If the combined value of these taxable services (in 12 months) exceeded the threshold level, you are liable to register for SST for these taxable services.
Under these groups, the taxable services includes provisions of all services that falls under the description. All services that comes under the descriptions are taxable services (for further detail on what each group comprises of, please refer to the custom's official guide).
For example:
Example 1
Wee Sdn Bhd provides accommodation services (Group A) and beverage services (Group B). The service value for accommodation is RM900,000 and beverage services is RM700,000. The calculation for taxable service will be Group A + Group B (equal to RM1,600,000). Wee Sdn Bhd will be liable to register for his accommodation and beverage services.
Example 2
Kee Sdn Bhd provides betting and gaming services (Group F) and beer house services (Group C)., The service value for betting and gaming is RM500,000 and beer house is RM250,000. The calculation for taxable service will be Group F + Group C (eqaul to RM750,000). Kee Sdn Bhd will be liable to register for his betting and gaming services and beer houses.
Further detail on group G to I will be discussed on our next blog post - How to classify your taxable service value in Service Tax Act 2018? (Part 3).
You can also visit the links below to read more on SST related topics in TreezSoft:
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