Gift / Deemed Supply

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Gift / Deemed Supply

Introduction

IM - "Import of goods with GST incurred". It means there is an input tax claimable. Tax rate is 6%.
Purchase of goods from oversea supplier, the supplier invoice received will not incurred GST. However, the GST will be taken place when the goods are discharged out from the port to forwarder warehouse or direct to the buyer. Custom will incurred the GST on the total value stated in K1 form.

GST IMPORTATION OF GOODS (IM)

Tax Code

[GST | Maintain Tax...]

You can found the following tax code available in SQL Financial Accounting.
Tax Code Description Tax Rate %
IM-0 Import of goods with no GST incurred (for Foreign Supplier Account) 0%
IM Import of goods with GST incurred 6%

Oversea Supplier Invoice

[Purchase | Purchase Invoice...]

1. Create the oversea supplier invoice at Purchase Invoice.
2. Select the tax code “IM-0”. Tax amount = 0.00
440PX


Received Forwarder Notification from K1 /Invoice

Let's said in the K1 form details:-
Description Amount (MYR) Calculation
Goods Value (A) 1,155.00 USD300 x 3.8500
Custom Duty (B)
(assumed is 5%)
57.75 Rm1,155 x 5%
Total Taxable Amount (C) 1,212.75 A + B
GST - IM 72.77 C x 6% = Rm1,212.75 x 6%

Usually, the forwarder will invoice to the principal company for the following details:-
Description Net (MYR) GST Gross (MYR)
Est. Duties (Import&/Excise Duty) 57.75
Est. GST Import (RM1,212.75 x 6%) 72.77
Est Duties + GST Import 130.52 130.52
Duty Processing Fee 100.00 6.00 106.00
Total Payable 236.52


NOTE : 
GST Import can be calculated in different way. It might based on total weight (ie. weight x container) or total meter square (ie,meter square x container). For example, GST Import = 30,000m2 x 10 containers x 6% = RM18,000.00


Forwarder Invoice Entry (Purchase Invoice)

[ Purchase | Purchase Invoice...]

1. Select the forwarder supplier code in Purchase Invoice.
2. Insert the following fields:-
  • Import Curr.Code (for display only)
  • Import Curr Rate (for display only)
  • Import Purchase Amt (GST Import input)
  • Tax Amount
  • Local Tax Amount
3. Click on the side button under Import Purchase Amt column. See screenshot below.
240PX


4. You have to input the info according to 2.3. Received Forwarder Notification from K1 /Invoice example.
Field Name Input Value Explanation
Currency Code USD Currency to the goods purchased
Currency Rate 3.85 Follow K1 exchange rate
Purchase Amount 300.00 Goods foreign value as stated in K1 form
Custom Local Amount 1,212.50 Follow K1 total taxable amount.
Formula = Purchase Amount + Custom Duty
Tax IM 6%
Tax Amount 72.77 1,212.75 x 6%
Permit No K1-3232323 Key-in the K1 no.

240PX
5. After press OK to exit the GST Import screen, the purchase invoice item description will be updated as “Purchase Value USD 300.00@3.8500 = RM 1,155.00, Permit No: K1-32323232” from the GST Import entered.
6. Below is the sample of Forwarder invoice entry.
240PX


Highlight Changes

Date Initiated by Remarks
28 March 2015 Loo Initial document.
22 April 2015 Loo Update K1 and new screenshot
24 June 2015 Loo For forwarder invoice, tax code IM should refer to Local Tax Amount instead of Tax Amount.

See also