Fixed Asset - Tax Filing for Capital Goods
After studying the Royal Customs guidelines in detail, there is no way the system will be able to support every single scenario, as there are just too many possibilities and subjective.
For example :
- Purchase of 1 CPU + 1 Server + 5 Monitors + 10 Speakers, with a total cost of Rm102,500 is applicable to CGA, although individual items cost less than Rm100k, but because individual item can't function by itself.
- However, purhcase of 20 laptops costing Rm6,000, with a total cost of Rm120k is not applicable to CGA
- Definition of interval is subjective too, depending on when the Capital Goods is used, not based on when the Capital Goods is purchased
- There's different calculation for Input Tax incurred before 1st interval
- For Input Tax incurred after 1st interval, there are 2 different treatments, Combined Adjustments and Parallel Adjustments
Thus, I suggest do not attempt to handle CGA in the system. Instead, advice the user to do their own calculation outside of the system, then record the CGA using existing GST Adjustment function and DS-CG tax_code (applicable fro negative CGA).
The most we can do is to provide 2 new reports :
- Capital Goods Listing : list of capital goods txn (GRN / SINV / CM / PR) and whether they have been filed or not
- GST Adjustment Listing : so that user can search by remarks the CGA that they have done
Regards,
Janet
Capital Goods Acquired (sample)
| No | Supplier ID | Name | Document | Txn Date | Reference Number | Amount | Tax Amount | Action | ||||
| Item Code | Tax Code | Item Amount | Item Tax Amount | IRR | Item Tax Amount To File | Capital Goods Adjustment Applicable? | Interval (Years) | |||||
| 1 | 1012 | TXRE Sdn Bhd | SINV1001, GRN1001 | 2015-08-01 | Ref-1001 | 1,500,000.00 | 90,000.00 | File | ||||
| officeBuilding1 | TX-RE | 1,500,000.00 | 90,000.00 | 70.00% | 63,000.00 | Yes | No | 10 | |||||
| 2 | 1012 | TXRE Sdn Bhd | SINV1002, GRN1002 | 2015-08-05 | Ref-1002 | 50,000.00 | 3,000.00 | File | ||||
| furnitures | TX-RE | 50,000.00 | 3,000.00 | 70.00% | 2,100.00 | Yes | No | 5 | |||||
| 3 | 1012 | TXRE Sdn Bhd | CM1001, PR1001 | 2015-08-10 | Ref-1003 | 50,000.00 | 3,000.00 | File | ||||
| furnitures | TX-RE | 50,000.00 | 3,000.00 | 70.00% | 2,100.00 | Yes | No | 5 | |||||
| gstPayable | 3,000.00 | |||||||||||
| 4 | 1012 | TXRE Sdn Bhd | SINV1003, GRN1003 | 2015-08-11 | Ref-1001 | 500,000.00 | 30,000.00 | File | ||||
| machinery | TX | 500,000.00 | 30,000.00 | 100.00% | 30,000.00 | Yes | No | 0 | |||||
| 5 | 1012 | TXRE Sdn Bhd | SINV1004, GRN1004 | 2015-08-12 | Ref-1002 | 102,500.00 | 6,150.00 | File | ||||
| 1 central processing unit | TX-RE | 95,000.00 | 5,700.00 | 70.00% | 3,990.00 | Yes | No | 5 | |||||
| 1 monitor | TX-RE | 5,500.00 | 330.00 | 70.00% | 231.00 | Yes | No | 5 | |||||
| 1 speaker | TX-RE | 1,500.00 | 90.00 | 70.00% | 63.00 | Yes | No | 5 | |||||
| Other accessories | TX-RE | 500 | 30.00 | 70.00% | 21.00 | Yes | No | 5 | |||||
| 6 | 1012 | TXRE Sdn Bhd | SINV1005, GRN1005 | 2015-08-12 | Ref-1002 | 120,000.00 | 7,200.00 | File | ||||
| 20 units of laptop @ Rm6k each | TX-RE | 120,000.00 | 7,200.00 | 100.00% | 7,200.00 | Yes | No | 0 | |||||
Capital Goods Acquired (sample)
| No | Supplier ID | Name | Document | Txn Date | Reference Number | Amount | Tax Amount | |||||||
| Item Code | Tax Code | Item Amount | Item Tax Amount | CGA Base % | Current Annual Partial Exemption % | No of Intervals | Last Interval | Adjustment Amount | ||||||
| 1 | 1012 | TXRE Sdn Bhd | SINV1001, GRN1001 | 2015-08-01 | Ref-1001 | 1,500,000.00 | 90,000.00 | File | ||||||
| officeBuilding1 | TX-RE | 1,500,000.00 | 90,000.00 | 70.00% | 75.00% | 10 | Yes | No | 450 | Details | |||||
Details of Adjustment calculation (sample)
| Interval | Tax Filing Cycle | Txn Date | Document | Item Code | Tax Code | Item Amount | Item Tax Amount | No of Intervals | CGA Base % | Annual Partial Exemption % | Initial / Adjustment Amount |
| 1 | 2015 Aug | 2015-08-01 | GRN1001 | officeBuilding1 | TX-RE | 1,500,000.00 | 90,000.00 | 10 | 70.00% | 63,000.00 | |
| 2 | 2016 Dec | 2016-12-31 | GRN1001 | officeBuilding1 | TX-RE | 1,500,000.00 | 90,000.00 | 10 | 70.00% | 75.00% | 450.00 |
| 3 | 2017 Dec | 2017-12-31 | GRN1001 | officeBuilding1 | TX-RE | 1,500,000.00 | 90,000.00 | 10 | 70.00% | 69.00% | -90.00 |
| Total | 63,360.00 | ||||||||||
| Input Claimed % | 70.4 | ||||||||||
| Input Tax Incurred After First Interval : Combined adjustments | |||||||||||
| Interval | Tax Filing Cycle | Txn Date | Document | Item Code | Tax Code | Item Amount | Item Tax Amount | No of Intervals | CGA Base % | Annual Partial Exemption % | Initial / Adjustment Amount |
| 1 | 2015 Aug | 2015-08-01 | GRN1002 | officeBuilding1 | TX-RE | 1,500,000.00 | 90,000.00 | 10 | 70.00% | 63,000.00 | |
| 2 | 2016 Dec | 2016-12-31 | GRN1002 | officeBuilding1 | TX-RE | 1,500,000.00 | 90,000.00 | 10 | 70.00% | 75.00% | 450.00 |
| 3 | 2017 Dec | 2017-12-31 | GRN1002 | officeBuilding1 | TX-RE | 1,500,000.00 | 90,000.00 | 10 | 70.00% | 69.00% | -90.00 |
| Total | 63,360.00 | ||||||||||
| Input Claimed % | 70.4 | ||||||||||
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