Service Tax

RO was asking me the other day whether a car workshop is licensed to charge service tax and upon doing some research, the answer was yes. Provision of general servicing, engine repairs and tuning, changing, adjusting and fixing of parts, wheel balancing, wheel alignment or body repairs including knocking, welding or repainting of motor vehicles all are taxable services.


Then yesterday I stumbled upon an article in the STAR regarding restaurants charging service tax. The following is an extract from the article:


"From July 1, only 435 restaurants nationwide have the licence to collect the service tax. A total of 4,800 outlets had to surrender the licence as they were no longer eligible to make the collection following the Government's decision to increase the sales threshold level from RM500,000 to RM3 mil a year."


To read further click Kastam Diraja Malaysia . For a Adobe copy of restaurants still licensed click here. To complain e-mail to cd@customs.gov.my or kastam@customs.gov.my .