Feb 25 2015, 12:55 PM
QUOTE(jfarm86 @ Feb 24 2015, 02:08 PM)
Current tax that impose one is SST, calculation is different from the later GST.
GST will impose 6% on every stage, from Manufacturer --> WholeSaler/Supplier --> Retail --> Consumer
While current one Sales & Service Tax are impose on service industry(including food/drinks/etc...) which only one stage only, correct me if I am wrong.
As for the price whether will increase or not, it really depends actually....
6% GST is imposed on every stage - that is correct, but they only "pay" the 6% for the value added by them only for each stage, i.e. they collect and pay to government 6% for their client based on the selling price, but they claim from government the 6% they paid to their supplier.GST will impose 6% on every stage, from Manufacturer --> WholeSaler/Supplier --> Retail --> Consumer
While current one Sales & Service Tax are impose on service industry(including food/drinks/etc...) which only one stage only, correct me if I am wrong.
As for the price whether will increase or not, it really depends actually....
For example - if they buy their raw material at RM100, and sell at RM150, then they collect RM9 as GST and pay to government , but they will claim RM6 from government and the net is only RM3 (for the RM50 value added by them). Overall, the government will only get 6% from the final price paid by the end user.
But their is the idea case - if every follow the rules.
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