Is gst applicable for the following scenario:

Non gst-registered sole proprietorship sell off the company-owned commercial property at 1mil.

TX for all advices.

1) does the sole propritor has more than 2 unit commercial -> If Yes then GSTabble.

2) Does the sole proprietor has TOTAL market value of > 2mil commercial ->If Yes Then GST

3) Does the sole proprietor yearly turnover above 500k ?

Any of Yes above it is GSTable.

heard from an agent that if one were to sell one commie a year even though one meets one of the above criteria
no gst needs to be paid??

So means dis scenario no gst?

yes, no need charge GST

Any different if it's a sdn bhd instead of sole? Really TX for ur answer..

The agent din't himself update on GST.

The ruling has changed few months ago.

Once meet anyone criteria as listed, GST registration is needed.

thanks for the update..

this gomen keep changing the rules and its causing a lot of confusion.

now they are trying to rope in as much as possible - start lenient then make it stricter and stricter to maximize
gst collection!

no difference as of today.

Sometimes, it is to avoid potential loopholes.

Anyway, for those not yet update the issue,

http://www.thestar.com.my/news/nation/2016...ear-gst-exempt/

Tumpang thread. Will the agent charge me agent fee + gst charges for helping me to sell off my condo? Coz my agent just told me so.

say selling price RM1Mil

say agent charge 2% as commission, thus commission payable is rm20,000

GST applicable is 6% on the RM20K, which RM1.2K.

Gomen will get the gst and not agent.

that why gomen can have RM40bil per year from gst. everything charge gst.

hmmm.. the rest of the "conditions" to register is "quite clear" but one remains a mystery.

about the company's annual income threshold thing. the general rule is that a company need to be registered as a GST payer if its annual income is > RM500k but if within a period of twelve months, the company sells a real estate and effectively pumps its annual income to more than RM500k then the company shall register as a GST payer in contemplation of that sale.

and then this brings another distinction. "income" means the money generated from the object of the company.

if it's a real property company then it's quite clear BUT what happens if the object of the company is not a real property company and rather focus trading? can the sale of the real estate still be considered as "income"?

The input tax can only be claimed back after the commercial property is disposed ?

Any simply explained book on gst with respect to dealing with commercial property available in the market ?

Yes, you can only claim it back when you SELL the Property and nothing else. Some real estate agents misinformed their clients that even GST pay during tenancy can be claimed back. This is false.

So as long as you still enjoy the Property, your GST stays with the government but then again, it will take eons before your claim will be given back to you and this is provided that your intended purchaser pays the GST which most probably not.

I would advise against reading such books right now because at the moment, the government doesn't even have an ultimatum as to how GST is to be imposed. It changes almost every 6 months.

Reading this books will give you an impression that what you read is the trite law but it may not be true 6 months later.

Following up with the customs time to time is the better option.

My understanding is that Sole Proprietorship IS NOT ELIGIBLE TO OWN ANY PROPERTY under NLC so the question of GST DO NOT ARISE here.

o_O? ehhhhhhhhh........ sole proprietorship is the individual so technically speaking a "sole proprietorship" can own a property.

Oh..when I say Sole Proprietorship means it is registered under ROB but not AN INDIVIDUAL per se..