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TAX317 Group Project SST

taxable (Universiti Teknologi MARA)

Studocu is not sponsored or endorsed by any college or university

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FACULTY OF ACCOUNTANCY (AC110)

TAX 317
GROUP PROJECT
GROUP 1

SUBMITTED BY:
NAME MATRIC NUMBER
NORSYAZANI BINTI ZAKI 2019267368
NUR AINAA BINTI NOORAZMI 2019277072
NURUL AIN BINTI SAFFE 2019288258
WAN ERINA FARISYA BINTI WAN AZUWAN 2019298636

CLASS:
JAC1105J

PREPARED FOR:
MADAM NUR EYLIAWATI JAPELUS

SUBMISSION DATE:

3rd JANUARY 2022

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TABLE OF CONTENT

NO. CONTENTS PAGES

1. Business Profile
i. Name of the business. 1
ii. Date of business registration and commencement. 1
iii. Registered address and contact details. 1
iv. Place of manufacturing address. 1
v. Name of owners. 1
vi. List of taxable goods. 1

2. Sales Tax Registration & Sales Tax

i. Methods in computing the threshold limit. 2
ii. Date of Business become Sales Tax Registration. 2
iii. Submission of SST-01 Form to the RMCD. 3-5
iv. Computation of sales tax payable. 6-7
v. Due date of submission of Sales Tax return and payment of sales tax 7
to the RMCD.
vi. Submission of SST-02 Form to the RMCD. 8-12
vii. Consequences for remits payments of sales tax to RMCD. 13

3. Based on Item No. 2

i. Business transactions. 14-15
ii. Invoices. 16-17
iii. Debit and Credit notes. 18-20

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BUSINESS PROFILE

Name of Business Lullababy Tiny Treasures Sdn Bhd

Type of Business Manufacturing

Date of Business Registration 29 February 2020

Date of Business Commencement 1 January 2020

Registration Address No. 109 Jalan Delima 16, Taman Cahaya Masai,

81700 Pasir Gudang, Johor.

Contact Details +607-7135450

Email lullababyttreasures@gmail.com

Place of Manufacturing Address Taman Molek, Persiaran Bumi Hijau, Johor Bahru, Johor

Name of owners • Norsyazani Binti Zaki

• Nur Ainaa Binti Noorazmi

• Nurul Ain Binti Saffe

• Wan Erina Farisya Binti Wan Azuwan

Manufactured products (Taxable Goods) • Baby care products: -

- Baby shampoo
- Baby shower
- Baby oil
- Baby talcum powder

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SALES TAX REGISTRATION & SALES TAX

2.

i. Methods in computing the threshold limit for Sales Tax registration.

HISTORICAL METHOD FUTURE METHOD

Based on the total sale value of all taxable Based on the total sale value of all taxable
goods in that month + 11 months immediately goods in that month + 11 months immediately
preceding the month has exceeded RM 500,000 succeeding the month will exceed RM 500,000
If the total sales of taxable manufactured goods ≥ threshold, the manufacturer is liable to register
for sales tax not later than the last day of the month (within 1 month) following the month he is
liable to be registered
Effective date – first day of the following month (after being registered)

ii. Assuming your business is still not required to register for Sales Tax as of 31 December 2020 due to
not reaching the threshold limit based the prospective method:

a. Determine whether the threshold limit has been reached in the month of January 2021.

The appropriate method for calculation of the threshold limit is using future method which is based on
the current month January 2021. The total amount of annual taxable sales from January 2021 to
December 2021 is RM530,000. So, the threshold limit exceeds RM500,000 is from January 2021 to
February 2021 (RM 144,200).

b. Due date business become a sales tax registrant.

The business should register as a sales tax registrant by 28 February 2021, that is within one month
after the business exceeds the threshold limit of RM500,000.

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SUBMISSION OF SST-01 FORM

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iii. Computation of Sales Tax Payable to the RMCD.

a. Cash sales made in the month of October 2021.

SALES TAX PAYABLE (RM)

Cash sales of taxable goods within Malaysia 10% X RM 18,000

= RM 1,800

Cash sales of taxable goods to designated areas / NIL

overseas

b. Credit sales made in the month of November 2021.

SALES TAX PAYABLE (RM)

Cash sales of taxable goods within Malaysia 10% X RM 25,000

= RM 2,500

Cash sales of taxable goods to designated areas / NIL

overseas

c. All sales made in the month of December 2021, and other transactions performed in the same
month as below:

SALES TAX PAYABLE

(RM)

Cash sales of taxable goods within Malaysia 10% X RM 20,100

= RM 2,010

Cash sales of taxable goods to designated areas / overseas NIL

Credit sales of taxable goods within Malaysia 10% X RM 34,000

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= RM 3,400

Credit sales of taxable goods to designated areas / overseas NIL

Donated taxable goods to a charitable institution in Kajang, 10% X RM 8,000

Selangor = RM 800

Imported taxable goods from Indonesia as trading stock

10% X RM 18,000
Value of goods RM 15,000 = RM 1,800
Add: Import duty (20% X RM 15,0000) RM 3000
Value for sales tax RM 18,000

iv. For the sales made in the month of August 2021:

a. Determine the due date of submission of Sales Tax return (SST-02) and payment of sales tax to
the RMCD.

= RM 9,300 + RM 22,200

= RM 31,500 X 10%

= RM 3,150

The amount of sales made in the month of August 2021 falls under the taxable period from July –
August 2021. Therefore, the due date for the submission of SST-02 is on 30/9/2021 and the payment of
sales tax is RM 3,150.

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SUBMISSION OF SST-02 FORM

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v. Explain the consequences if your business remits payment of sales tax to the RMCD, in respect of:

a. Sales made in the month of August 2021 on 26 December 2021.

If the business remits the amount of sales made in the month of August 2021 on 26 December 2021, the
business is required to pay the service tax and penalty for late submission of sales tax amounted to
RM4,410 because the payment is submitted after the due date of 31/10/2021.

RATE OF PENALTY
1/10/2021 – 30/10/2021 10%
31/10/ 2021 – 29/11/2021 15%
30/11/2021 – 26/12/2021 15%
40%
PENALTY (SALES TAX PAYABLE – RM 3,150 X 40%) RM 1,260
AMOUNT OF SALES TAX RM 3,150
AMOUNT OF SALES TAX AND PENALTY RM 4,410

b. Sales made in the month of September 2021 on 16 November 2021.

If the business remits the amount of sales made in the month of September 2021 on 16 November 2021,
so there is no penalty will be imposed to the business because the payment is made within the due date
of 16 November 2021.

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Based on Item No.2

BUSINESS TRANSACTIONS:

a. Cash sales of taxable goods within Malaysia in the month of May 2021.
MAY 2021
On 4th May 2021, a department store in Kubang Pasu bought 60 units of baby shower, 60 units of baby
shampoo, 50 units of baby talcum, and 30 units of baby oil worth RM5,200 and made the payment
immediately using cash.

DATE TRANSACTION AMOUNT (RM)

04/05/2021 Sold 60 units of baby shower, 60 units of baby 5,200
shampoo, 50 units of baby talcum, and 30 units of
baby oil worth RM5,200 to department store from
Kubang Pasu.

b. Cash sales of taxable goods to designated areas in the month of May 2021.
MAY 2021
On 15th May 2021, Babyku Store Mart from Tioman bought 20 units of baby talcum and 20 units of
baby oil worth RM800. Lullababy Tiny Treasures Sdn Bhd issued the invoice of RM800. Store Mart
settled the payment immediately by cash.

DATE TRANSACTION AMOUNT (RM)

15/5/2021 Sold 20 units of baby talcum and 20 units of baby 800
oil worth RM800.

c. Cash sales of taxable goods to overseas in the month of May 2021.

MAY 2021
A dealer from Thailand come to Lullababy Tiny Treasures Sdn Bhd warehouse to order wholesale baby
oil worth RM1,400 for Johny’s Baby Sdn Bhd located in Hat Yai, Thailand. Lullababy Tiny Treasures
Sdn Bhd issued an invoice of RM1,400. The dealer settled the payment immediately via cash.

DATE TRANSACTION AMOUNT (RM)

26/05/2021 Sold wholesale baby oil to a dealer from Hat Yai, 1,400
Thailand for RM1,400.

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d. Credit sales of taxable goods within Malaysia in the month of June 2021.
JUNE 2021
On 7th June 2021, a healthcare store retailer, the Ginger Mart located in Batu Pahat, Johor had ordered a
200 units of baby shower, 200 units of baby shampoo, 250 units of baby talcum and 250 units of baby
oil. Lullababy Tiny Treasures Sdn Bhd issued an invoice of RM22,000 to the Ginger Mart, and they
made the settlement using cheque before 30 June 2021.

DATE TRANSACTION AMOUNT (RM)

07/06/2021 Sold 200 units of baby shower, 200 units of baby 22,000
shampoo, 250 units of baby talcum and 250 units of
baby oil to Ginger Mart worth RM22,00.

e. Credit sales of taxable goods to designated areas in the month of June 2021.
JUNE 2021
A Kmart Baby located in Langkawi bought some baby talcums worth RM900 using cheque on 18th
June 2021.

DATE TRANSACTION AMOUNT (RM)

18/06/2021 Sold baby talcums worth RM900 to a Kmart Baby 900
located in Langkawi.

f. Credit sales of taxable goods to overseas in the month of June 2021.

JUNE 2021
On 24 June 2021, EcoBaby Enterprise from Korea has purchased 100 units of baby shower worth
RM3,000 and 100 units of baby talcum from Lullababy Tiny Treasures Sdn Bhd and paid RM5,000
using cheque.

DATE TRANSACTION AMOUNT (RM)

24/6/2021 Sold 100 units of baby shower worth RM3,000 and 5,000
100 units of baby talcum to EcoBaby Enterprise
from Korea worth RM5,000 in credit.

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INVOICE:

a. Cash sales of taxable goods to designated areas in the month of May 2021.

INVOICE

Lullababy Tiny Treasures

Taman Molek, Persiaran Bumi Hijau, Date: 15th May 2021
Johor Bahru, Johor Invoice No.: 202115
lullababyttreasures@gmail.com Customer ID: IN1505
07-7135450

Bill To:
Babyku Store Mart
No. 138, Jalan Perdana,
Tioman,
Kuala Rompin, Pahang
011-42697979

Item No. Description Qty Unit Price (RM) Total (RM)

1. Baby Talcum 20 20.00 400.00
2. Baby Oil 20 20.00 400.00

Paid by Cash SUBTOTAL 800.00

enter total amount DISCOUNT 0.00
SUBTOTAL LESS DISCOUNT 800.00
enter percentage TAX RATE 0%
TOTAL TAX 0.00
DELIVERY 00.00
TOTAL 800.00

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b. Credit sales of taxable goods within Malaysia in the month of June 2021.

INVOICE

Lullababy Tiny Treasures Date: 7th June 2021

Taman Molek, Persiaran Bumi Hijau, Due Date: 30th June 2021
Johor Bahru, Johor Invoice No.: 202107
lullababyttreasures@gmail.com Customer ID: IN0706
07-7135450

Bill To:
Ceria Nursery
No. 127, Jalan Mesra,
Taman Perdana,
Batu Pahat, Johor
012-7593321

Item No. Description Qty Unit Price (RM) Total (RM)

1. Baby Shower 200 30.00 6,000.00
2. Baby Shampoo 200 30.00 6,000.00
3. Baby Talcum 250 20.00 5,000.00
4. Baby Oil 250 20.00 5,000.00

SUBTOTAL 22,000
DISCOUNT 0.00
TAX RATE 10%
TOTAL TAX 2,200.00
DELIVERY CHARGES 00.00
TOTAL 24,200.00

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DEBIT AND CREDIT NOTE;

a. A debit note issued in the month of July 2021 in relation to credit sales made within Malaysia
in the month of May 2021.

JULY 2021
Lullababy Tiny Treasures Sdn Bhd had sold wholesale of baby products worth RM16,000 on 29th May
2021 to DEEBA Baby Centre. However, an intern from Lullababy Tiny Treasures Sdn Bhd made a
mistake when issued an invoice to DEEBA Baby Centre for only RM6,000 instead of RM16,000.
Therefore, on July 2021, Lullababy Tiny Treasures Sdn Bhd issued a debit note to DEEBA Baby
Centre for another RM10,000 to balance the difference and make an adjustment on account receivable
DEEBA Baby Centre.

DATE TRANSACTION AMOUNT (RM)

02/07/2021 Debit note to DEEBA Baby Centre due to mistakes 10,000

in issued the invoice worth RM16,000 instead of
RM6,000.

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b. A credit note issued in the month of October 2021 in relation to credit sales made to overseas in
the month of July 2021.

OCTOBER 2021

On 15th October 2021, there is credit note issued for the baby products that Couture Baby Store had
purchased on 17th July 2021. The Couture Baby Store returned 50 units of baby shampoo and 50 units
of baby talcum costly RM2,500 due to defect and damages causes from labelling mistake and
unsecured packaging.

DATE TRANSACTION AMOUNT (RM)

15/10/2021 Returned items from the Couture Baby Store for 50 2,500
units of baby shampoo and 50 units of baby talcum
costly RM2,500 due to defect and damages.

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