View source for Special-GST Treatment: Non-deductible Expenditure

<big>How to enter and to retrieve the non-deductible expenditure?</big>


==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 />
<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:-
::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 />
: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:- 
::{| class="wikitable"
|-
! 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
|}
<br />

==How does this work?==
===Setup New Tax Code===
''[GST | Maintain Tax ...]''<br />
:1. Click New. <br />
:2. Follow the below SETTINGS to create. <br />
::{| class="wikitable"
|-
! 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
|}<br />

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

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

<br />

===Data Entry for Non-Deductible===
'''For Purchase Invoice'''<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-02.jpg | 340PX]]
<br />

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

<br />

==How to analyse the total tax amount from Non-Deductible?==
''[ GL | Print Journal of Transaction Listing...]''<br />

:1. Select the date range to APPLY.<br />
:2. Filter at the Tax grid column. See screenshot below.<br />
::[[File:GST-Non-deductible Expenditure-04.jpg | 240PX]]
<br />

:3. You can see the non-deductible transactions filtered by ND-0. <br />
::[[File:GST-Non-deductible Expenditure-05.jpg | 240PX]]
<br />

:4. From this instance, the total non-deductible expenditure amount is '''Rm3030.00''' <br />

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

==See also==