|
(1)
|
(2)
|
(3)
|
|
Taxable
person
|
Taxable
service
|
Total
value of taxable service
|
|
8.
Any person, Government agency, local authority or statutory body who provides
advertising services.
|
Provisions
of all advertising services, excluding provision of such services for
promotion outside Malaysia.
|
RM
500,000
|
(Advertising services were also taxable services and taxable persons were similar but these were categorised under Second Schedule, Group G in Service Tax Regulations 1975)
It is important for businesses or persons providing services in such an industry to know if the nature of their services is considered 'Advertising services.'
Businesses need to consider whether tax has to be charged on the total cost of the services provided or on Commission received as well as who pays when the total of your services does not reach the threshold of RM500,000 per year but if combined with associated business which undertakes the job, the threshold is reached. A party may not be registered but a related party is registered, so how is tax to be calculated in such a situation.
Below are some decisions that will help business persons understand their position and tax liability.
3. Local business or person who acts as an agent to recruit clients for Advertising through
Overseas principal and advertising is managed by Overseas principal
4. Agent required to charge Service tax on total although his receipt is a portion ie RM200.00
5. Printing cost where itemised in Bill is exempted:
pengiklanan. Nisbah boleh berbeza kecuali ditetapkan oleh Persatuan
9. Work Process and role of players in Advertising services and Tax liability:
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