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 />


'''GST Expenditure (Effective from YA 2015)'''<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:-
::# Non-registered person with turnover exceed GST threshold of Rm500,000.
::a. Non-registered person with turnover exceed GST threshold of Rm500,000.
::# 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 />
* 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"
::{| class="wikitable"
|-
|-
Line 17: Line 18:
| Passenger car (Cost and maintenance)  || Blocked || Deductible (to claim capital allowance)
| Passenger car (Cost and maintenance)  || Blocked || Deductible (to claim capital allowance)
|-
|-
| Club subscription fee || Blocked || Non-deductible
| Club subscription fee || Blocked || '''Non-deductible'''
|-
|-
| Medical insurance/personal accident insurance || Blocked || Deductible
| Medical insurance/personal accident insurance || Blocked || Deductible
Line 23: Line 24:
| Family benefits || Blocked || Depend (check with your auditors or tax consultant)
| Family benefits || Blocked || Depend (check with your auditors or tax consultant)
|-
|-
| Entertainment expenses (Potential customer) || Blocked || Non-deductible
| Entertainment expenses (Potential customer) || Blocked || '''Non-deductible'''
|-
|-
| Entertainment expenses (Supplier) (p || Blocked || Allowed 50% deduction
| Entertainment expenses (Supplier) (p || Blocked || Allowed 50% deduction
|}
|}
<br />
Subject to GST:<br />
FIZ Local sell to FIZ Local → SR<br />
FIZ local sell to LMW Local → SR<br />
FIZ/LMW local sell to non-FIZ/LMW → SR<br />
FIZ/LMW Local sell to Oversea → ZR<br />
For example,
::{| class="wikitable"
|-
! Item !! Item Description !! Qty !! Unit Price<br />(RM) !! Value(RM) !! '''Import Duty<br />(RM)'''
|-
| 1. || Shirts || 300 pcs || 25.00 || 7,500.00 || '''1,500.00'''
|-
| 2. || Paints || 100 pcs || 30.00 || 3,000.00 ||  '''600.00'''
|-
|  ||  ||  || Total || 10,500 || '''2,100.00'''
|}
<br />
''Assuming 20% import duty (RM10,500 x 20% = 2,100.00)''
<br />
<br />


GST on value + Import Duty are subject to GST (SR) = (10,500.00 + 2,100.00) x 6% = '''756.00'''
==How does this work?==
<br />
===Setup New Tax Code===
 
''[GST | Maintain Tax ...]''<br />
 
:1. Click New. <br />
Therefore, the Tax Invoice will be presented as per below:<br />
:2. Follow the below SETTINGS to create. <br />
::{| class="wikitable"
::{| class="wikitable"
|-
|-
! Item !! Item Description !! Qty !! Unit Price<br />(RM) !! Value<br />(RM)
! Field Name !! Field Contents
|-
|-
| 1. || Shirt || 300 pcs || 25.00 || 7,500.00
| Code || ND-0 (Recommended code)
|-
|-
| 2. || Paints || 100 pcs || 30.00 || 3,000.00
| Description || Non-Deductible
|-
|-
| || GST (SR-6%) ||  ||  ||    756.00
| Tax Type || (Non GST - Both Sales & Purchase)
|-
|-
| || Total Amount Payable || ||  || 11,256.00
| Tax Rate || 0% (please key-in)
|}
 
==How to enter the Tax Invoice if there is a FIZ/LMW transactions to another party? ==
''[Sales | Invoice...]''<br />
 
According to the example mentioned in above.<br />
1. 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)
| Tax Account || GST-301 (This field is compulsory. Due to tax rate is 0%, therefore no posting)
|-
|-
| SHIRT || SHIRTS ||300 pcs || 25.00 || 7,500.00 || <BLANK> || 0.00 || 7,500.00
| Tax Inclusive|| Untick
|-
| PAINTS || PAINTS || 100 pcs || 30.00 || 3,000.00 || <BLANK> || 0.00 || 3,000.00
|}<br />
|}<br />


2. Inser new row and enter the GST on total supply value (Rm7500 + Rm3000 = Rm10,500) direct into Taxable Amount column (C1)<br />
:3. Click Save. See below screenshot.
::{| class="wikitable"
::[[File:GST-Non-deductible Expenditure-01.jpg | 440PX]]<br />
|-
<br />
! Description !! Taxable Amount !! Tax Code !! Tax Amount !! SubTotal(Tax)
 
|-
'''NOTE : '''<br />
| GST on value Rm10,500.00 || 10,500.00 || SR || 630.00 || 630.00
Do not click the tax rate arrow key down if the tax account is not defined yet.<br />
|}<br />


::[[File:FIZ&LMW-Invoice Entry-01.jpg | 440PX]]
<br />
<br />


''NOTE : ''<br />
===Data Entry for Non-Deductible===
''A1 : Key-in "GST on value" into description.''<br />
'''For Purchase Invoice'''<br />
''B1 : Must select tax code.''<br />
:1. Insert a new detail row and key-in the '''total input tax not going to claim'''.<br />
''C1 : Key-in the Total Supply Value into Taxable Amount.''<br />
:2. Select the tax code "ND-0".<br />
:3. See below screenshot.
::[[File:GST-Non-deductible Expenditure-02.jpg | 340PX]]
<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 />
'''For GL Cash Book'''<br />
::{| class="wikitable"
: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 />
! Description !! Taxable Amount !! Tax Code !! Tax Amount !! SubTotal(Tax)
:3. See below screenshot.
|-
::[[File:GST-Non-deductible Expenditure-03.jpg | 340PX]]
| GST on Import Duty 20% || 2,100.00 || SR || 126.00 || 126.00
<br />
|}<br />


::[[File:FIZ&LMW-Invoice Entry-02.jpg | 440PX]]
'''NOTE: '''
<br />
Please ensure you understand the Non-Deductible expenditure from your auditors before you apply this guide.


''NOTE : ''<br />
''A2 : Key-in "GST on Import Duty" into description.''<br />
''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.