Yakin Consultancy Sdn Bhd providing management consultancy on various corporate matters since 2000. The company is...

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.

Solutions

Expert Solution

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.

ekkarill92 answered 1 year ago

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