Assignment group tax - FACULTY OF BUSINESS AND ACCOUNTANCY PAS 2333 TAXATION II ASSIGNMENT INDIRECT TAX IN MALAYSIA PREPARED BY NAME MATRIC NUMBER

Assignment group tax - FACULTY OF BUSINESS AND...

This preview shows page 1 - 5 out of 15 pages.

FACULTY OF BUSINESS AND ACCOUNTANCY PAS 2333 TAXATION II ASSIGNMENT: INDIRECT TAX IN MALAYSIA PREPARED BY: NAME MATRIC NUMBER NUR AMIRAH SYAFIQAH BINTI MUSTAKIM 4164007681 SITI NOR SYAHIDAH BINTI CHE ASHIM 4165000781 UMI SAFIAH BINTI ABDUL RAHIM 4180003372 PREPARED FOR: MADAM NOOR NASYIKIN BINTI MD. ZAIN DATE OF SUBMISSION: 19 JULY 2019 1
TABLE OF CONTENT NO. CONTENT PAGE 1.0 Introduction 1 2.0 Types of indirect tax 2-5 3.0 Scope of charge 6 4.0 Rates of indirect tax 7 5.0 Administration of indirect tax 8-10 6.0 Differences between direct tax and indirect tax 11 7.0 Conclusion 12 References 2
1.0 INTRODUCTION The taxes are the basic source of revenue for the government. Revenue raised from the taxes are utilized for meeting the expenses of government like, provision of education, infrastructure facilities such as road and etc. Tax is the financial charge imposed by the government on income, commodity or activity. Government imposes two types of taxes namely direct taxes and indirect taxes. An indirect tax is a tax collected by an intermediary from the person who bears the ultimate economic burden of the tax. The intermediary later files a tax return and forward the tax proceeds to government with the return. In the sense, the term indirect tax, which is collected directly by government from the person on whom it is imposed. Indirect tax is so called as it is paid indirectly by the final consumer of goods and services while paying for purchase of goods or for enjoying services. The Indirect Tax Practice offers a range of professional services which include tax consulting and related services with regards to laws and regulations administered by the Royal Malaysian Customs Department ("Customs"). These include matters pertaining to sales tax, service tax, import/ export duties, excise duty, product tariff code classification and valuation, and Goods and Services Tax It is broadly based since it is applied to everyone in the society whether rich or poor. Since the cost of the tax does not vary according to income. However, indirect taxation can be viewed as having the effect of a regressive tax as it imposes a greater burden on the poor than on the rich, as both rich and poor pay the same tax amount for consumption of a certain quantity of a specific good. 3
2.0 TYPE OF INDIRECT TAX 1) Sales tax and services tax (SST) Objective of sales tax - to increase revenue collection and to be used by the government as a financial measure to regulate economic growth and national development. It was first introduced into Malaysia taxation system in 1972 and governed by sales tax act 1972. It operates as a single stage tax - means tax is only imposed once either at the input or output stage. It also called as a consumption tax which levied on consumer who acquires the taxable goods manufactured in Malaysia and goods imported to Malaysia from home consumption.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture