9.37 GST Treatment from Income Tax Department

1. Output tax bear by taxpayer

The selling price for a good is Rm1,000 and the output tax is Rm60.

The buyer pays Rm1,000 and company bears the Rm60 output tax.

Therefore, the output tax Rm60 is not an allowable tax deduction under paragraph 39(1)(p) ITA.

2. Registered and entitled to claim input tax.

ABC company is registered with RMCD. This company has purchase a machine cost RM5,300 (inclusive input tax Rm300.00).

Input tax Rm300 is claimable from RMCD.

Therefore, qualifying expenditure for the purpose of capital allowance = Rm5,000.

3. Blocked Input Tax

Purchase a passenger car price at:

Car Price = Rm120,000

Input Tax (BL) = 7,200

Total = 127,200

Therefore, Qualifying Expenditure = 127,200 (Deductible)