Special-GST Treatment: Non-deductible Expenditure: Difference between revisions

Latest revision as of 10:04, 13 April 2016

How to enter and to retrieve the non-deductible expenditure?

Introduction

This guide will teach you the way to key-in the data entry and help you to analyse the non-deductible expenditure related to GST. It is follow to the latest 2015 amendment in Income Tax Act 1967.

GST Expenditure (Effective from YA 2015)

1. para 39(1)(o): GST input tax paid or to be paid not allowed as deduction if:-

a. Non-registered person with turnover exceed GST threshold of Rm500,000.

b. Registered person fail to claim input tax credit his entitled to claim.

2. section 39(1)(p): Output tax absorbed by GST by registered person is not allowed as tax deduction.

3. GST block input tax & deductible expenses:-

Block Tax	GST input Tax	Tax deductible?
Passenger car (Cost and maintenance)	Blocked	Deductible (to claim capital allowance)
Club subscription fee	Blocked	Non-deductible
Medical insurance/personal accident insurance	Blocked	Deductible
Family benefits	Blocked	Depend (check with your auditors or tax consultant)
Entertainment expenses (Potential customer)	Blocked	Non-deductible
Entertainment expenses (Supplier) (p	Blocked	Allowed 50% deduction

How does this work?

Setup New Tax Code

[GST | Maintain Tax ...]

1. Click New.

2. Follow the below SETTINGS to create.

Field Name	Field Contents
Code	ND-0 (Recommended code)
Description	Non-Deductible
Tax Type	(Non GST - Both Sales & Purchase)
Tax Rate	0% (please key-in)
Tax Account	GST-301 (This field is compulsory. Due to tax rate is 0%, therefore no posting)
Tax Inclusive	Untick

3. Click Save. See below screenshot.

NOTE : 

Do not click the tax rate arrow key down if the tax account is not defined yet.

Data Entry for Non-Deductible

For Purchase Invoice

1. Insert a new detail row and key-in the total input tax not going to claim.

2. Select the tax code "ND-0".

3. See below screenshot.

For GL Cash Book

1. Insert a new detail row and key-in the total input tax not going to claim.

2. Select the tax code "ND-0".

3. See below screenshot.

NOTE: 
Please ensure you understand the Non-Deductible expenditure from your auditors before you apply this guide.

How to analyse the total tax amount from Non-Deductible?

[ GL | Print Journal of Transaction Listing...]

1. Select the date range to APPLY.

2. Filter at the Tax grid column. See screenshot below.

3. You can see the non-deductible transactions filtered by ND-0.

4. From this instance, the total non-deductible expenditure amount is Rm3030.00

NOTE: 
This non-deductible tax amount will not post to GAF.

@@ Line 3: / Line 3: @@
 ==Introduction==
-This guide will teach you the way to key-in the data entry and help you to analyse the non-deductible expenditure related to GST. It is follow to the latest 2015 amendment in Income Tax Act 1967.<br />
+:This guide will teach you the way to key-in the data entry and help you to analyse the non-deductible expenditure related to GST. It is follow to the latest 2015 amendment in Income Tax Act 1967.<br />
 <br />
 '''GST Expenditure (Effective from YA 2015)'''<br />
-. para 39(1)(o): GST input tax paid or to be paid not allowed as deduction if:-
+:1. para 39(1)(o): GST input tax paid or to be paid not allowed as deduction if:-
 ::a. Non-registered person with turnover exceed GST threshold of Rm500,000.
 ::b. Registered person fail to claim input tax credit his entitled to claim.<br />
-. section 39(1)(p): Output tax absorbed by GST by registered person is not allowed as tax deduction.<br />
+:2. section 39(1)(p): Output tax absorbed by GST by registered person is not allowed as tax deduction.<br />
-. GST block input tax & deductible expenses:-
+:3. GST block input tax & deductible expenses:-
 ::{| class="wikitable"
 |-
@@ Line 30: / Line 30: @@
 <br />
-==How to do?==
+==How does this work?==
-''[Sales | Invoice...]''<br />
+===Setup New Tax Code===
+''[GST | Maintain Tax ...]''<br />
-===New Tax Code===
+:1. Click New. <br />
-According to the example mentioned in above.<br />
+:2. Follow the below SETTINGS to create. <br />
-. Insert and select the stock items sold with empty tax code. Because the stock items are under FIZ/LMW control. <br />
 ::{| class="wikitable"
 |-
-! Item Code !! Description !!Qty !! Unit Price !! Subtotal !! Tax Code !! Tax Amount !! SubTotal(Tax)
+! Field Name !! Field Contents
+|-
+| Code || ND-0 (Recommended code)
+|-
+| Description || Non-Deductible
 |-
-| SHIRT || SHIRTS ||300 pcs || 25.00 || 7,500.00 || <BLANK> || 0.00 || 7,500.00
+| Tax Type || (Non GST - Both Sales & Purchase)
 |-
-| PAINTS || PAINTS || 100 pcs || 30.00 || 3,000.00 || <BLANK> || 0.00 || 3,000.00
+| Tax Rate || 0% (please key-in)
-|}<br />
-. Inser new row and enter the GST on total supply value (Rm7500 + Rm3000 = Rm10,500) direct into Taxable Amount column (C1)<br />
-::{| class="wikitable"
 |-
-! Description !! Taxable Amount !! Tax Code !! Tax Amount !! SubTotal(Tax)
+| Tax Account || GST-301 (This field is compulsory. Due to tax rate is 0%, therefore no posting)
 |-
-| GST on value Rm10,500.00 || 10,500.00 || SR || 630.00 || 630.00
+| Tax Inclusive|| Untick
 |}<br />
-::[[File:FIZ&LMW-Invoice Entry-01.jpg | 440PX]]
+:3. Click Save. See below screenshot.
+::[[File:GST-Non-deductible Expenditure-01.jpg | 440PX]]<br />
 <br />
-  ''NOTE : ''<br />
+  '''NOTE : '''<br />
- ''A1 : Key-in "GST on value" into description.''<br />
+  Do not click the tax rate arrow key down if the tax account is not defined yet.<br />
-  ''B1 : Must select tax code.''<br />
- ''C1 : Key-in the Total Supply Value into Taxable Amount.''<br />
 <br />
-. Insert new row and enter the GST on total Import Duty (Rm1,500 + Rm600.00 = Rm2,100) direct into Taxable Amount column (C2)<br />
+===Data Entry for Non-Deductible===
-::{| class="wikitable"
+'''For Purchase Invoice'''<br />
-|-
+:1. Insert a new detail row and key-in the '''total input tax not going to claim'''.<br />
-! Description !! Taxable Amount !! Tax Code !! Tax Amount !! SubTotal(Tax)
+:2. Select the tax code "ND-0".<br />
-|-
+:3. See below screenshot.
-| GST on Import Duty 20% || 2,100.00 || SR || 126.00 || 126.00
+::[[File:GST-Non-deductible Expenditure-02.jpg | 340PX]]
-|}<br />
+<br />
-::[[File:FIZ&LMW-Invoice Entry-02.jpg | 440PX]]
+'''For GL Cash Book'''<br />
+:1. Insert a new detail row and key-in the '''total input tax not going to claim'''.<br />
+:2. Select the tax code "ND-0".<br />
+:3. See below screenshot.
+::[[File:GST-Non-deductible Expenditure-03.jpg | 340PX]]
 <br />
-  ''NOTE : ''<br />
+  '''NOTE: '''
-  ''A2 : Key-in "GST on Import Duty" into description.''<br />
+  Please ensure you understand the Non-Deductible expenditure from your auditors before you apply this guide.
- ''B2 : Must select tax code.''<br />
- ''C2 : Key-in the Total Import Duty value into Taxable Amount.''<br />
 <br />
-==GST Return==
+==How to analyse the total tax amount from Non-Deductible?==
-''[ GST | New  GST Return...]''<br />
+''[ GL | Print Journal of Transaction Listing...]''<br />
-. Process GST Return for the month<br />
+:1. Select the date range to APPLY.<br />
-. Click on print GST-03<br />
+:2. Filter at the Tax grid column. See screenshot below.<br />
+::[[File:GST-Non-deductible Expenditure-04.jpg | 240PX]]
+<br />
-::[[File:FIZ&LMW-GST03-01.jpg | 240PX]]
+:3. You can see the non-deductible transactions filtered by ND-0. <br />
+::[[File:GST-Non-deductible Expenditure-05.jpg | 240PX]]
 <br />
- ''RESULTS : ''<br />
+:4. From this instance, the total non-deductible expenditure amount is '''Rm3030.00''' <br />
- ''5a Total value of supplies = 12,600.00''<br />
-  ''5b total output tax = 756.00''<br />
+  '''NOTE: '''
-<br />
+ This non-deductible tax amount will not post to GAF.
 ==See also==
-* [http://www.sql.com.my/document/sqlacc_docs/PDF/GST36-Input_Entry_for_ATS.pdf Input Entry For ATS]