9.02 What type of taxable supply apply to the transport and forwarding company?

Some user might ask, as a company purchase goods from the supplier and the supplier invoice incurred add-on the transport charges. The transport charges are categorized as “Exempt Tax Supply”, it means no GST incurred. You might thought the transport company are fall into "Exempt Tax Supply".

For example,

Supplier invoice = 1000.00

add: Transport = 53.00

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1053.00

GST = 63.18 (6% x 1053)

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Total incl GST = 1116.18

So, do the transport and forwarding company fall into "Exempt Tax Supply" as well? The answer is INCORRECT!!!

They are providing the service to supplier to deliver the goods to a destination, therefore they are fall into "Standard Rated Supply" catergory.

For example,

Forwarding company provide transport to deliver good from supplier to a destination.

Forwarding invoice = 50.00 (6%)

GST = 3.00 (6% x 50.00)

Total incl GST = 53.00 (50.00 + 3.00)

Tips:

GST is not determined by type of expenses or income, it is more refer to type of supply the company provide.

Refer back to topic..... 9.1 Types of Taxable Supply