FACULTY OF BUSINESS AND ACCOUNTANCYPAS 2333TAXATION II ASSIGNMENT:INDIRECT TAX IN MALAYSIA PREPARED BY:NAMEMATRIC NUMBERNUR AMIRAH SYAFIQAH BINTI MUSTAKIM4164007681SITI NOR SYAHIDAH BINTI CHE ASHIM4165000781UMI SAFIAH BINTI ABDUL RAHIM4180003372PREPARED FOR: MADAM NOOR NASYIKIN BINTI MD. ZAINDATE OF SUBMISSION: 19 JULY 20191
TABLE OF CONTENTNO.CONTENTPAGE1.0Introduction12.0Types of indirect tax 2-53.0Scope of charge64.0Rates of indirect tax75.0Administration of indirect tax 8-106.0Differences between direct tax and indirect tax 117.0Conclusion12References2
1.0INTRODUCTIONThe taxes are the basic source of revenue for the government. Revenue raised fromthe taxes are utilized for meeting the expenses of government like, provision ofeducation, infrastructure facilities such as road and etc. Tax is the financial chargeimposed by the government on income, commodity or activity. Government imposestwo types of taxes namely direct taxes and indirect taxes.An indirect tax is a tax collected by an intermediary from the person who bears theultimate economic burden of the tax. The intermediary later files a tax return andforward the tax proceeds to government with the return. In the sense, the termindirect tax, which is collected directly by government from the person on whom itis imposed.Indirect tax is so called as it is paid indirectly by the final consumer ofgoods and services while paying for purchase of goods or for enjoying services.The Indirect Tax Practice offers a range of professional services which include taxconsulting and related services with regards to laws and regulations administered bythe Royal Malaysian Customs Department ("Customs"). These include matterspertaining to sales tax, service tax, import/ export duties, excise duty, product tariffcode classification and valuation, and Goods and Services TaxIt 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, indirecttaxation can be viewed as having the effect of a regressive tax as it imposes a greaterburden on the poor than on the rich, as both rich and poor pay the same tax amountfor consumption of a certain quantity of a specific good.3
2.0TYPE OF INDIRECT TAX1)Sales tax and services tax (SST) Objective of sales tax -to increase revenue collection and to be used by the government as afinancial measure to regulate economic growth and nationaldevelopment.It was first introduced into Malaysia taxation system in 1972 and governed bysales tax act 1972.It operates as a single stage tax - means tax is only imposed once either at theinput or output stage.It also called as a consumption tax which levied on consumer who acquires thetaxable goods manufactured in Malaysia and goods imported to Malaysia fromhome consumption.