tag:blogger.com,1999:blog-9833017.post6476037707398999992..comments2023-10-24T23:29:52.549+13:00Comments on nooryahaya....ramblin on: Malaysia Budget, a step in the right directionnooryahayahttp://www.blogger.com/profile/13747568333463200282noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-9833017.post-36631718504800786852007-09-08T18:53:00.000+12:002007-09-08T18:53:00.000+12:00All newspapers stated that there are no any form o...All newspapers stated that there are no any form of additional tax or increase of tax rate in this year budget.<BR/>I wish to point out that This is not true. One of the proposed change are the abolishing of the service tax "threshold" means all services provided by accounting/management firms to us will be subjected 5% service tax. The Govt has enlarge the scope of coverage to those small accounting/management firms that previously not qualify to charge the service tax.<BR/><BR/>pls refer budget 2008 appendix here. <BR/><BR/>Present Position<BR/>Professional, consultancy and management service providers that have reached the threshold i.e. sales turnover of RM150,000 within a period of 12 months or part thereof, are required to be licensed under the Service Tax Act 1975 and collect 5% service tax.<BR/>The sales turnover of such service providers is generally uncertain and making it difficult for them to ascertain whether they have reached the threshold. Thus, exposing them to the risk of being penalised for failure to get the license and collect service tax.<BR/>Professional services that are subject to service tax are accounting, legal, engineering, architecture, survey, valuation, appraisal and estate agency.<BR/>Proposal<BR/>To facilitate providers of professional, consultancy and management services to collect service tax as well as to create healthy competition among the same service poviders, it is proposed that the threshold for professional, consultancy and management services be abolished.<BR/>The proposal is effective from 1 January 2008.<BR/><BR/>Today, a chinese newspaper (SinChew) even reported the opposite by saying the service tax of these firms were being abolished which is not a correct interpretation.Anonymousnoreply@blogger.com