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#Post#: 322--------------------------------------------------
GST INCURRED IN PAYMENT TO INDIVIDUAL SUPPLIER
By: khoonchai Date: March 12, 2018, 2:58 am
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Greetings,
Have some questions here. Hope anyone who knows what's the
correct GST treatment could help out.
1) My co. rented a few residential units for employees to stay.
Monthly rental are to be paid to INDIVIDUAL OWNER. Our current
practice is record the GST as EP - purchase of exempted
supplies.
But my concern is we are paying an individual party instead of a
company. Shouldn't it be NR? Or we need to follow the nature of
the transaction?
2) For the purchase of passenger car, the 1st time insurance
should we included it as BLOCKED input tax or we claim the input
tax as the payment for insurance premium is eligible for us to
claim the input tax?
Thanks.
#Post#: 328--------------------------------------------------
Re: GST INCURRED IN PAYMENT TO INDIVIDUAL SUPPLIER
By: konami20 Date: April 25, 2018, 6:04 am
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1) EP or NR doesnt matter, it wont show in GST-03 ;D
2) Passenger car is block input tax
#Post#: 330--------------------------------------------------
Re: GST INCURRED IN PAYMENT TO INDIVIDUAL SUPPLIER
By: Hui Theng Date: April 25, 2018, 8:19 pm
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For Q2,Refer to guide on input tax credit (pg13),
11. However, a taxable person is allowed to claim the input tax
incurred on the following expenses relating to a passenger
motorcar registered in his own name:
(a) Insurance premium;
(b) Petrol, diesel and NGV;
(c) Parking; and/ or
(d) Battery certified by a competent body recognized by the DG
of Road Transport Department for use in electric motor car under
the Motor Vehicles (Construction and Use) Rules 1959 [LN
170/1959].
12. For passenger motorcar that is owned or registered under the
name of other entity, any input tax incurred on the expenses
listed in Paragraph 11 are allowed to be claimed by a taxable
person except the input tax on insurance premium. However, a
taxable person must fulfill the following conditions:
(a) The passenger motorcar is used in his business and
attributable to the taxable supply made by him;
(b) The expenses are reimbursed and accounted as his business
expenses;and
(c) Hold a valid tax invoice on the expenses acquired.
#Post#: 331--------------------------------------------------
Re: GST INCURRED IN PAYMENT TO INDIVIDUAL SUPPLIER
By: konami20 Date: April 25, 2018, 8:56 pm
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I didnt claim input tax on any expenses on motor vehicle,
maintenance or insurance premium, neither the passenger car is
under company name nor his own name.
If you are in doubt, just don claim 8)
#Post#: 334--------------------------------------------------
Re: GST INCURRED IN PAYMENT TO INDIVIDUAL SUPPLIER
By: khoonchai Date: April 25, 2018, 10:23 pm
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Thank you konami & chong for your replies.
Our current practice is 1st time insurance we put it as blocked
input tax, but subsequent year insurance renewal we claim the
input tax.
Then I think should be no problem. ;D
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