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

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==Introduction==
==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 />
<br />


'''GST Expenditure (Effective from YA 2015)'''<br />
'''GST Expenditure (Effective from YA 2015)'''<br />
1. 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.
::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 />
::b. Registered person fail to claim input tax credit his entitled to claim.<br />
2. 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 />
3. GST block input tax & deductible expenses:-  
:3. GST block input tax & deductible expenses:-  
::{| class="wikitable"
::{| class="wikitable"
|-
|-
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===Setup New Tax Code===
===Setup New Tax Code===
''[GST | Maintain Tax ...]''<br />
''[GST | Maintain Tax ...]''<br />
1. Click New. <br />
:1. Click New. <br />
2. Follow the below SETTINGS to create. <br />
:2. Follow the below SETTINGS to create. <br />
::{| class="wikitable"
::{| class="wikitable"
|-
|-
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|}<br />
|}<br />


:3. Click Save. See below screenshot.
::[[File:GST-Non-deductible Expenditure-01.jpg | 440PX]]<br />
::[[File:GST-Non-deductible Expenditure-01.jpg | 440PX]]<br />
<br />
<br />


  ''NOTE : ''<br />
  '''NOTE : '''<br />
  ''Do not click the tax rate arrow key down if the tax account is not defined yet.''<br />
  Do not click the tax rate arrow key down if the tax account is not defined yet.<br />


<br />
<br />


3. 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 />
<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 />
<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 />


1. Process GST Return for the month<br />
:1. Select the date range to APPLY.<br />
2. 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 />
<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==
==See also==
* [http://www.sql.com.my/document/sqlacc_docs/PDF/GST36-Input_Entry_for_ATS.pdf Input Entry For ATS]

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.
440PX


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.
340PX


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.
340PX


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.
240PX


3. You can see the non-deductible transactions filtered by ND-0.
240PX


4. From this instance, the total non-deductible expenditure amount is Rm3030.00 
NOTE: 
This non-deductible tax amount will not post to GAF.

See also

Retrieved from "https://wiki.sql.com.my/index.php?title=Special-GST_Treatment:_Non-deductible_Expenditure&oldid=5037"
Last modified
This page was last edited on 13 April 2016, at 10:04.