Dear bro,

If you are the buyer of Infinity Tower SOFO near kelana jaya, you may receive GST claim letter from the Developer soon on the progressive payment. 6% will be charged on the balance progressive payment from bank.

For your information our S&P is signed before the GST announcement, developer got no right to claim the GST from us if there is no GST related clause stated in S&P. You may refer to the link below for more information.

http://ch.therakyatpost.com/%e8%b4%a2%e7%b...8b%e7%bc%b4gst/

Article above was written by the reputable tax consultant.

You may also download the Guideline from custom malaysia on the link below, it is also clearly stated the same thing in Page 54, Q37 & A37.

http://www.customs.gov.my/en/pg/pg_ig/Guid...%2030032015.pdf

Please share your thought here and combine all the buyer together if possible to negotiate with the developer to waive it.

Thanks.

This post has been edited by miracle80: Jul 9 2015, 11:40 AM

sentence look quite clear that any portion after GST is subject to GST for commercial title development.

[quote=Kevin Chan,Jul 5 2015, 06:28 PM]


sentence look quite clear that any portion after GST is subject to GST for commercial title development.

It is depends on the S&P bro, If there is no GST clause in S&P,developer have no right to transfer the GST to the buyer

Are you sure spa says so? They would usually have a clause stating compliance to whatever new rules and laws implmented by the government. As such these blanket statements is deemed inclusive.
And thread title need not be exclusive to just infiniti tower purchaser, purchaser of commercial products such as atria sofo, arcadia dpc, etc are all slap with the gst portion as well.

[quote=miracle80,Jul 5 2015, 08:06 PM]
[quote=Kevin Chan,Jul 5 2015, 06:28 PM]


sentence look quite clear that any portion after GST is subject to GST for commercial title development.

It is depends on the S&P bro, If there is no GST clause in S&P,developer have no right to transfer the GST to the buyer

[/quote]


Hi, i do agree above clause quoted is correct & applicable generally for commercial property with clear spelled gst provision or those in effect after 1/4/15. However, ours is transitional project hence we should be governed by what is written in S&P. First of all, there's no clause, provision or any fine print that mention about GST. Addition to that, please refer S&P page 15 "New Laws Affecting The Project" which reads that we are not liable to additional fees, charges or taxes in the event of new law / amendment of existing law imposed. Besides that most of their marketing gimmick in general property sites advertised "GST absorbed by developer". What's more is that Kastam Ruling Q&A 33 did specific answer on this assuming that silence on gst provision, price is assumed inclusive gst. Ideal City has no right to amend s&p as claimed in attched memo and include the provision of gst to make us liable to pay for it. What we need to do is bring the matter to Kastam GST department for further confirmation with their tax invoices, memo & our s&p. Each individual purchaser should make an effort to clarify with Kastam & assert Ideal City to absorb the remaining progressive GST.

This post has been edited by Priscilla Yong: Jul 5 2015, 11:25 PM


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Best of luck to you all.

Their lawyer didn't get paid for nothing. unless they are so poor to even get a proper lawyer.

SnP is prepared by their lawyer, of course it favor them.

Even you get an edge on the case, they will just cut the quality of your entire project to cover the GST cost.
either end you lose.

GST is simple.

Either i tell you, you pay (lower price) or i include into the price (higher price) and don't tell you.
RM100 + RM6 GST is the same as RM106 no GST.

Ohh YES, do make a report to the KASTAM office. Get as much purchaser together and submit the complain together. you make a better chance if you have the number (headcount) to support you.

interestingly the letter from the developer to them mention revision in the SPA.
perhaps not all loose ends were covered effectively.

It depended on SPA, even if the SPA is silence on GST, one still needs to look at the other clauses stated in the SPA regarding the amendment, or any other provision etc.

GST is known to be implemented long ago in one day, lawyer who draft the SPA should know how to insert clause to deal with the potential GST issue.

This post has been edited by cherroy: Jul 6 2015, 08:49 AM

[quote=Priscilla Yong,Jul 5 2015, 10:57 PM]
Hi, i do agree above clause quoted is correct & applicable generally for commercial property with clear spelled gst provision or those in effect after 1/4/15. However, ours is transitional project hence we should be governed by what is written in S&P. First of all, there's no clause, provision or any fine print that mention about GST. Addition to that, please refer S&P page 15 "New Laws Affecting The Project" which reads that we are not liable to additional fees, charges or taxes in the event of new law / amendment of existing law imposed. Besides that most of their marketing gimmick in general property sites advertised "GST absorbed by developer". What's more is that Kastam Ruling Q&A 33 did specific answer on this assuming that silence on gst provision, price is assumed inclusive gst. Ideal City has no right to amend s&p as claimed in attched memo and include the provision of gst to make us liable to pay for it. What we need to do is bring the matter to Kastam GST department for further confirmation with their tax invoices, memo & our s&p. Each individual purchaser should make an effort to clarify with Kastam & assert Ideal City to absorb the remaining progressive GST.

Hi priscillia, kindly PM me your contact no, I plan to form a chatgroup to discuss further on our next course of action, tq

I am a buyer. This project already delayed. Although I am upset that I have to pay more money now for GST (how the world would I know the GST will be implemented now?) we have to remember, if we decide to take action, the project may be stalled. The other option of course is to pay the GST and recalculate a profitable selling price when you sell the property. I don't know how deep Ideal City pockets are but I know they are not big time developer like MS, SPS, YTL, etc....this forum is too public to discuss this. Better use an exclusive chatgroup.

I didn't check the SPA. What you posted is surprising... They didn't cover the new laws like most SPA would.

This post has been edited by Malaysian_driver: Jul 6 2015, 11:24 PM

[quote=miracle80,Jul 6 2015, 09:47 PM]
[quote=Priscilla Yong,Jul 5 2015, 10:57 PM]
Hi, i do agree above clause quoted is correct & applicable generally for commercial property with clear spelled gst provision or those in effect after 1/4/15. However, ours is transitional project hence we should be governed by what is written in S&P. First of all, there's no clause, provision or any fine print that mention about GST. Addition to that, please refer S&P page 15 "New Laws Affecting The Project" which reads that we are not liable to additional fees, charges or taxes in the event of new law / amendment of existing law imposed. Besides that most of their marketing gimmick in general property sites advertised "GST absorbed by developer". What's more is that Kastam Ruling Q&A 33 did specific answer on this assuming that silence on gst provision, price is assumed inclusive gst. Ideal City has no right to amend s&p as claimed in attched memo and include the provision of gst to make us liable to pay for it. What we need to do is bring the matter to Kastam GST department for further confirmation with their tax invoices, memo & our s&p. Each individual purchaser should make an effort to clarify with Kastam & assert Ideal City to absorb the remaining progressive GST.

Hi priscillia, kindly PM me your contact no, I plan to form a chatgroup to discuss further on our next course of action, tq

[/quote]


Hi I went to Kastam & get confirmation on the issue. Apparently, different Kastam officer advise differently. However, one point is confirmed, if you're GSt registered person & sign the S&P with Ideal City longer than 2 years prior to GST implementation date 1/4/15, kindly write in to Ideal City / call them to bill you zero-rated under Sec. 187 "Contracts with no opportunity to review". Ideal City PIC argued that they have checked the page 15 clause 23 in S&P with their appointed lawyer, the laws refer construction related laws & not applicable to GST.

[quote=Priscilla Yong,Jul 7 2015, 11:23 AM]
Hi I went to Kastam & get confirmation on the issue. Apparently, different Kastam officer advise differently. However, one point is confirmed, if you're GSt registered person & sign the S&P with Ideal City longer than 2 years prior to GST implementation date 1/4/15, kindly write in to Ideal City / call them to bill you zero-rated under Sec. 187 "Contracts with no opportunity to review". Ideal City PIC argued that they have checked the page 15 clause 23 in S&P with their appointed lawyer, the laws refer construction related laws & not applicable to GST.

Yes eventhough the clause not applicable for GST, does any clause in S&P stated that we need to pay for GST?
In fact I had given my S&P to my lawyer to review, he stated that the clause in pg. 15 is protecting buyer. Thus he advise me to gather all the buyer n negotiate with the developer to waive the GST. What do you think?

GST cannot be waived one and cannot be zero rated simply by anyone.

You cannot have a S&P to counter act the GST ruling. (like as mentioned above zero rated the GST because of contract with no opportunity to review)

Somebody must pay the GST if the GST ruling said, any progressive payment on non-GST exempted property (commercial/industrial) after 1/4/2015 is subjected to GST.

No one can overule the GST ruling.

So GST is a must, aka you cannot overule the law/existing GST ruling.

While a contract is silence on GST, it doesn't mean buyer is not subjected to GST.
Just like teacher ask the student, anyone finish their homework, the whole class silent, it doesn't mean the student finish or not finish their homework.

But on the term "no opportunity to review", then it is between purchaser and vendor already, which is another issue.
Until there is a verdict on similar case, or any specific directive or ruling from Custom department to deal with the case mentioned, we cannot assure the solution should be.

This post has been edited by cherroy: Jul 8 2015, 08:33 AM

[quote=cherroy,Jul 8 2015, 08:32 AM]
GST cannot be waived one and cannot be zero rated simply by anyone.

You cannot have a S&P to counter act the GST ruling. (like as mentioned above zero rated the GST because of contract with no opportunity to review)

Somebody must pay the GST if the GST ruling said, any progressive payment on non-GST exempted property (commercial/industrial) after 1/4/2015 is subjected to GST.

No one can overule the GST ruling.

So GST is a must, aka you cannot overule the law/existing GST ruling.

While a contract is silence on GST, it doesn't mean buyer is not subjected to GST.
Just like teacher ask the student, anyone finish their homework, the whole class silent, it doesn't mean the student finish or not finish their homework.

But on the term "no opportunity to review", then it is between purchaser and vendor already, which is another issue.
Until there is a verdict on similar case, or any specific directive or ruling from Custom department to deal with the case mentioned, we cannot assure the solution should be.

Yes we nobody can avoid paying GST, the question is only who to pay? The purchaser or the vendor? I think u should go through the Guideline from Custom to Developer which I shared in the very beginning post before u comment. Without GST clause in the S&P before GST announcement, Developer may not able transfer the GST to the buyer.

Yes, then we proceed the right path, instead of saying "zero rated on the commercial properties" which is not right to start with.

Silence of GST in the clause, doesn't mean developer cannot charge GST on the purchase price.

If there is clause (normally got as far as I encountered, which is quite standard) stated S&P must/will follow what the law stated or imposed or any other regulation incurred, then the developer is just obeying what rules imposed by gov by charging the GST on purchaser.

By right, in GST, it is always the buyer pay the GST, (even for the so called "absorbed GST" goods, seller just lower the price to counteract the GST effect, GST still being imposed paid by buyer).

But with the "no opportunity to review" clause, we cannot assure how the situation should be pan out.

As developer can argue they do not review the property purchase price, still selling the same price, but GST is imposed by Custom, not developer. So they do not breach the contract as they are still selling the same price.
While purchaser can argue that they pay extra more due to GST, which is not the same as stated in the contract.

So, we cannot assure the answer until there is a verdict on this issue.

This post has been edited by cherroy: Jul 8 2015, 09:39 AM

Agree.

It is a grey area and anyone can argue base on his / her own reasoning, unless it is clearly defined and written in the SPA.

GST definitely have to be paid by someone.

From what I understand, GST must be clearly stated in the contract especially whether the price is "inclusive" or "exclusive" of GST. If there is no explicit mention of the treatment, it is considered that the price is inclusive of GST. (hint)

so you think you can charge GST on an exclusive basis? Not quite... see section 9(5) and (7).

throw all the above questions to developer, I confirm tonight they will pull hair (coz i Lost all of mine).

P/S: our solution is to terminate all difficult clients LOL.

Cherroy

The "No Opportunity to Review" is like chasing a unicorn, very few people qualify, the following are the conditions:-

(a) both parties must be a GST registrable person
(b) must be taxable supply
© contract must be irrevocable and agreed by all parties before 1/4/2013
(d) recipient of the supply is himself making wholly taxable supply.

If you qualify for the above, the price you pay will be zero-rated for 5 years.

This post has been edited by aurora97: Jul 8 2015, 01:45 PM

Well said. May i know where to refer for Section 9(5) and (7)?
I plan to get some advise from Tax consultant, is there any recommendation?

Ops sorry Goods and Services Tax Act 2014.

Get your free copy here Goods and Services Tax Act 2014

Your tax consultant should be more pro than me, I think forum can only help so much…

I would like the answers you receive from your Tax Consultant though … lol.


This post has been edited by aurora97: Jul 9 2015, 12:20 PM

In my case, Kastam Kelana Jaya advised that weather the clause of S&P mention GST or not, purchaser has to pay. This is their general implication.
However, i receive an email for Kastam Putrajaya (HQ) replying me in original wording "Since the agreement is silent on GST matters, then the selling price as stated in the agreement is inclusive of GST". Also, they actually initiated for round table discussion with developer. Yet, the representative from Ideal City turn down on the ground that they can't be entertaining each and every purchaser request for such meeting. They informed will personally get Court decision with their lawyer. It's up to you guys whether to wait & see or make some effort to pursue the grey area.