In: Accounting
Yakin Consultancy Sdn Bhd providing management consultancy on
various corporate
matters since 2000. The company is a service tax registrant with
RMC, taking effect on
1.9.2019.
For the taxable period 1.9.2019 to 31.10.2019, the company is
required to pay service
tax of RM16,000 by 30.11.2019.The company makes the following
payments:
RM
31.10.2019 6,000
11.11.2019 3,000
16.12.2019 5,000
The director of the company, Sam wishes to know the service tax
risk.
Required:
(ii) Advice Sam on his service tax risk.
As non payment of service tax on due date will come to risk in two pay one is | ||||||||
Interest & penalty and second is prosecution shall be launched after certain time. | ||||||||
As Servcie tax need to be paid within 30 days otherwise interest shall be calculated | ||||||||
for 01-09.2019 to 31-10-2019 as following: | ||||||||
(i) on first 30 days ( 01-12-2019 to 30-12-2019) - 10% | ||||||||
(ii) on second 30 days ( 31-12-2019 to 29-01-2020) - 15% | ||||||||
(iii) Third 30 days (30-01-2020 to 28-02-2020) - 15% | ||||||||
So due on 01-12-2019 was (16000-6000-3000) = RM 7,000 | ||||||||
First interest shall be (7000*10%) = RM 700 | ||||||||
Second interest shall be (7000-5000)*15% = RM 300 | ||||||||
Also prosecution risk is there as still RM 2000 Service tax is pending. | ||||||||
So advise to pay asap and must pay before 28 feb 2020 along with interest. | ||||||||