1 Bad Debts Relief & Recovery

Seller Books
Period
Date
Transactions
Jan
5-Feb Tax Invoice
Feb
12-May Receipt

Amount
GST (4%)
20,800.00
800.00
(12,000.00)
8,800.00

5-Aug Bad debt relief

1-Sep Receipt

(8,800.00)

338.46
338.46

Buyer
5-Aug Debt unpaid
1-Sep Payment

8,800.00
(8,800.00)

2 Bad Debts Relief & Recovery

Seller Books
Period
Date
Transactions
Jan
5-Feb Tax Invoice
Feb
12-May Receipt

338.46
338.46

Amount
GST (4%)
20,800.00
800.00
(12,000.00)
8,800.00

5-Aug Bad debt relief

5-Nov Receipt

3,900.00

338.46
150.00

12,700.00
Buyer
5-Aug Debt unpaid
5-Nov Payment

8,800.00
(3,900.00)

338.46
150.00

3 Accounting Basis: From Payment basis to Accounting basis

C - D = Output Tax (Debtors) - Input Tax (Creditors)
C>D = Increase Output Tax; D>C = Increase Input Tax
Debtors
Company Account
Paid
AA
1,500.00
BB
1,900.00
CC
2,100.00
DD
1,800.00
7,300.00
GST (4%)
Output Tax

Creditors
Balance
900.00
700.00
900.00
1,000.00
3,500.00

Company
A
B
C
D

600.00
1,200.00
1,200.00
800.00
3,800.00
1/26

GST (4%)
Input Tax

146.15

To account for Output Tax (Debtors)

To claim Input Tax (Creditors)
Net Payable
4 Accounting Basis: From Accounting Basis to Payment basis
A-B = Input Tax (Creditors) - Output Tax (Debtors)

C
D

146.15
134.62
11.54

A>B=Increase Output Tax; B>A= Increase Input Tax

Creditors

Debtors

Company Account
Paid
AA
1,500.00
BB
1,900.00
CC
2,100.00
DD
1,800.00
7,300.00
GST (4%)
Output Tax

Balance
1,100.00
1,000.00
900.00
1,000.00
4,000.00

Company
A
B
C
D

400.00
900.00
1,200.00
800.00
3,300.00
1/26

GST (4%)
Input Tax

126.92

Claimed Input Tax (Creditors)

Accounted Output Tax (Debtors)

A
B

126.92
134.62

Net Payable

(7.69)

5 Mix Supplies
Supply

Taxable

Q1
Q2
Q3
Q4

Exempt

Residual
Input Tax

Total

400,000
50,000
800,000
1,000,000

50,000
100,000
40,000
100,000

450,000
150,000
840,000
1,100,000

10,000
20,000
12,000
18,000

2,250,000

290,000

2,540,000

60,000

De-minimus Test
<15000/Q
50,000
100,000
40,000
100,000

6 Mix Supplies - Pass De-minimius Test

April - June 2007
Taxable Supply
Exempt Supply
Total Supply
Part of Taxable Supply
Sale of machinery
Incidental exempt

De-minimus Test
Exempt supply
Incidental Exempt supply
Per Qtr
Per month
Total Exempt & Incidental
Exempt Supply

Residual
Supply
Input Tax
Input Tax
600,000.00
50,000.00
7,000.00
10,000.00
500.00
610,000.00
50,500.00

200,000.00
4,000.00

Total Input Tax claimable

10,000.00
4,000.00
14,000.00
4,666.67

14,000.00

Total Input Tax Credit

Total Taxable Supply

Exempt/Total (%)
Pass Test & no apportionament required

610,000.00
2.30

7 Mix Supplies : Fail De-minimus test

April - June 2007

Residual
De-minimus Test
Supply
Input Tax
Input Tax
Exempt supply
600,000.00
50,000.00
7,000.00 Incidental Exempt supply

Taxable Supply
Exempt Supply

14,000.00

5,000.00

Total Supply

614,000.00

55,000.00

Part of Taxable Supply

Sale of machinery
Incidental exempt

200,000.00
4,000.00

Total Exempt & Incidental

Total Supply
Exempt/Total (%)
Fail Test

Apportionment Formula
R =

Taxable Supply + Excluded Items (Supply Capital Goods + Incidental financial services + Imported services)
Taxable Supply + Exempt - Excluded Items (Supply Capital Goods + Incidental financial services + Imported service
=

600,000
600,000

396,000

200,000
14,000

4,000
200,000

410,000
=

96.59 %
Amount
Rate
7,000.00

Residual Input Tax

Input Tax on Taxable Supply

Total
96.59

Toal Input Tax Credit

6,760.98
50,000.00
56,760.98

9 Capital Goods adjustments

Interval
1
2
3
4
5
6
7
8
9
10

Input Tax
Annual IRR
500,000.00
300,000.00
400,000.00
350,000.00

80
85
70
75
80
84
88
74
72
70

Input Tax
Claimed
400,000.00
255,000.00
280,000.00
262,500.00

Input Tax
to be
Adjusted
500,000.00
800,000.00
1,200,000.00
1,550,000.00
1,550,000.00
1,550,000.00
1,550,000.00
1,550,000.00
1,550,000.00

Cumulative
Input Tax
500,000.00
800,000.00
1,200,000.00
1,550,000.00
1,550,000.00
1,550,000.00
1,550,000.00
1,550,000.00
1,550,000.00

1,550,000.00

77.26

8 Capital Goods adjustment

Input Tax
Annual Input Tax

40,000.00
8,000.00

Interval
1
2
3
4
5

AIRR (%)
60
70
55
100
100

1,197,500.00

Toal Capital
%
Annual
Goods
CG Adjustment Input Tax
Adjustment
0
8,000.00
10
8,000.00
800.00
-5
8,000.00
(400.00)
40
8,000.00
3,200.00
40
8,000.00
3,200.00
6,800.00

Remarks

Taxable
Period

Increase Input Tax

Increase Output Tax

August
Sept

30-Sep 8800/20800 x 800

31-Oct 8800/20800 x 800

Increase Output Tax

Increase Input Tax

August
Nov

30-Sep 8800/20800 x 800

31-Oct 8800/20800 x 800

Remarks

Taxable
Period

Increase Input Tax

Increase Output Tax

August
Nov

30-Sep 8800/20800 x 800

31-Dec 3900/20800 x 800

Increase Output Tax

Increase Input Tax

August
Nov

30-Sep 8800/20800 x 800

31-Dec 8800/20800 x 800

Account
Paid
Balance
2,100.00
1,100.00
1,000.00
1,400.00
900.00
500.00
1,900.00
900.00
1,000.00
2,300.00
1,300.00
1,000.00
7,700.00
4,200.00
3,500.00
1/26
134.62

Increase Output Tax

GST
Return

GST
Return

Account
Paid
Balance
2,100.00
1,100.00
1,000.00
1,400.00
900.00
500.00
1,900.00
900.00
1,000.00
2,300.00
1,300.00
1,000.00
7,700.00
4,200.00
3,500.00
1/26
134.62

Increase Input Tax

De-minimus Test
<5%

Claimable Residual
%
RM

P/(F)
11.11
66.67
4.76
9.09

F
F
F
F

88.89
33.33
95.24
90.91

8,888.89
6,666.67
11,428.57
16,363.64

88.58

43,347.76

Annual adjustment - additional Claim

53,149.61
9,801.84

Increase Input tax

Total Input Tax claimable

Taxable
Exempt

50,000.00
500.00

Residual

7,000.00

Total Input Tax Credit

Annual
Residual
RM

57,500.00

De-minimus Test
14,000.00
4,000.00

Incidental Exempt supply

Per Qtr

18,000.00

Per month

6,000.00

Total Exempt & Incidental

Exempt Supply

18,000.00
614,000.00
2.93

Exempt/Total (%)

financial services + Imported services)

ncidental financial services + Imported services)

Cumulative
Input Tax
Claimed
400,000.00
655,000.00
935,000.00
1,197,500.00
1,197,500.00
1,197,500.00
1,197,500.00
1,197,500.00
1,197,500.00

4,000

CGA
Baseline
80.00
80.00
81.88
77.92
77.26
77.26
77.26
77.26
77.26
77.26

%
RM
CGA
CGA
Adjsutment Adjsutment
5.00
2,500.00
(11.88)
(9,500.00)
(2.92)
(3,500.00)
2.74
4,250.00
6.74
10,450.00
10.74
16,650.00
(3.26)
(5,050.00)
(5.26)
(8,150.00)
(7.26) (11,250.00)

(3,600.00)