Annual Adjustment

Owned by l (Unlicensed)
Last updated: 2015-May-26 by Ghugan Sivaperumal (Unlicensed)
1 min read

Explanation

Ref : [[http://gst.customs.gov.my/en/rg/SiteAssets/general_guides/Revised/General%20Guide%20-revised%20as%20at%2027%20October%202013.pdf]]

222. A recovery of residual input tax is only provisional. The proportion recovered may not be reflective due to fluctuations in supplies from one (1) taxable period to another. To overcome this shortcoming, a mixed supplier is required to make an annual adjustment so as to ascertain whether there has been any over-deduction or under-deduction of residual input tax provisionally deducted over the whole tax year.

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Guide

Step 1 : Calculate the annual adjustment

Formula to calculate annual adjustment :

* A = TX-RE tax amount filed for the the year + TXN43 claimed for the year (only if the Filing Period's DMR Status = qualify)
* B = eligible IRR for the year (refer to [[http://intranet.wavelet.asia/projects/wavelet-ms/wiki/Partial_Exemption_(IRR)]] for IRR formula)
* Adjustment for Output Tax to be reported = A - B

Step 2 : Report the adjustment ( Extended Module > Malaysia GST > GST Adjustment )

Once adjustment been done, a Journal will be created to record the adjustment. This Journal will be listed in the Input Tax Report

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