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What are the taxable and non-taxable services in Malaysia? (Part VIII)

Taxable persons and services under the Second Schedule of the Service Tax Regulations 1975 are:
Group G: Other service providers
Taxable Persons Taxable Services
Subheading II

4. Operators of motor vehicle service or repair centres having a total annual sales turnover of more than RM150,000.
Provision of:
  • general servicing, engine repair and tuning, replacing, adjusting and fixing spare parts, tire balancing, wheel alignment and auto body repairs including knocking, welding or repainting;
  • pre-delivery inspection (PDI) by service centres of auto dealers to automotive assembly plants (separate entity).
Non-Taxable Services
Provision of:
  • vehicles not registered and require pre-delivery inspection (PDI);
  • maintenance services on motorcycles, aircraft, ships, trains, etc.;
  • installation of car accessories such as audio and alarm system, air conditioning, window tint, power windows and central door locking;
  • issuance of inspection reports only, for vehicles with electronic systems where repair and replacement of parts are not involved;
  • costs of spare parts.
Taxable Persons Taxable Services
5. Private agency licensed under the Private Agencies Act 1971 [Act 27] having a total annual sales turnover of more than RM150,000. Provision of:
  • guard and protection for the personal safety, safety of other people or security of the property or business in Malaysia;
  • central monitoring system (CMS);
  • auto teller machines service and handling of cash in transit (CIT) which involve security transport services, cash management services, total records management and monitoring services.
Non-Taxable Services
Provision of:
  • guard and protection for the personal safety, safety of other people or security of the property or business outside of Malaysia.

    Example: A local singer requires the personal protection service from a local agency during his performance in London;
  • private investigator (PI).


Service tax will be abolished on March 31, 2015 with the implementation of Goods and Services Tax (GST) on April 1, 2015.


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Knowledge Base ID :   1550
Last Reviewed :   July 2, 2014
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