Embedded Files
Deminus rules infinity % might happen where the formula has divided by a zero value.
To satisfly the DMR rules,
Malaysia GST
1. DMR <= 5% and
2. Total ES <= RM5,000.00
Singapore IRAS
1. DMR <= 5% and
2. Total ES <= SGD40,000.00
Let said I have the following scenario:-
Total Sales for the month = 0.00
Total Output Tax for the month = 0.00
Total Purchase with TX-N43 = 10,000.00
Total Residual Input Tax = 600.00
===================================================================
Malaysia - GST
Your scenario did not pass the De minimis Rule 1 because Exempt Supply/Total Supply x 100%= 0/0 x 100%= infinity %.
Infinity % is definitely not <= 5%.
Conclusion:
Therefore, you cannot claim the 100% Residual Input Tax in the month. After longer period adjustment, the Residual Input Tax will be revalue and adjust accordingly.
===================================================================
Singapore - IRAS
Since the value of average exempt supplies is not more than $40,000 per month and 5% of the total value of supplies, the De Minimis Rule is satisfied and all input tax incurred for the making of exempt supplies are provisionally claimable.
As the input tax claims are only provisionally allowed at the end of each prescribed accounting period, you are still required to perform a longer period adjustment by performing the same test in respect of the input tax claims you have made in the longer period.
Conclusion:
Therefore, you can claim the 100% Residual Input Tax in the month. After longer period adjustment, the Residual Input Tax will be revalue and adjust accordingly.
Google Sites
Report abuse