Goods and Services Tax (GST) Seminar 2016

Transcription

1 Goods and Services Tax (GST) Seminar 2016 Thursday, 15 September 2016 firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. 1

2 Question 1: Asset disposal - Answers Answers: I. Output tax to be accounted for by XYZ 7% x $30,000 = $2,100 II. Is ABC required to deem any supplies arising from transactions in items (a) and (b) above? (a) To account for output tax on sale 7% x $3,000 = $210 (b) To account for deemed output tax on free computers given away 7% x $150 = $10.5 firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. 2

3 Question 2: Answers Administrative services such as issuing invoices/ tax invoices zero-rate [section 21(3)(j)] Handling services for transportation of goods zero-rate [section 21(3)(k)] Storage services for imported goods zero-rate [section 21(3)(k) or (g)] firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. 3

4 Question 3: Answers (i) Co. B No Co. C Yes (ii) To the extent that the training relates to highly specialised industry (e.g. pilot training services) where training syllabus and contents are controlled but Co.C has flexibility to customise method of training - No comprehensive control exists firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. 4

5 Question 4: Answers (i) (ii) (iii) No. Total aggregate period (i.e. 183 days) does not exceed 183 days No. Mr Lee s personal visit was after cessation of his work not counted Company B will be regarded as having an FE in Singapore for entire supply of installation services since period threshold of 183 days will be breached. If the contracted sum exceeds S$1million, Company B is liable to register for GST. firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. 5

6 Question 5 : Answers (i) (ii) (iii) Yes. Singapore office represents a FE in Singapore No. Company A s brokerage services directly benefit Company B s FE in Singapore Section 21(3)(j) is not met. Yes. The audit services are used by Company B s establishment in HK. firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. 6

7 Question 6: Answer Whether GST treatment should be determined per each expense - No, since expenses are recovered as basis of charge for primary service of management support provided to B If B belongs in Singapore standard-rate If B belongs outside Singapore zero-rate 2015 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-àvis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. 7

8 Question 7: Answer Whether Seconding Co is entitled to claim input tax on seconded staff s expenses - No, if the secondment of staff satisfies the qualifying conditions to be treated as not a supply 2015 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-àvis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. 8

9 Question 8: Answers I. Commission received by MNO from FC 7% GST II. GST incurred on MNO s tax invoice for purchase of new car - Claimable in full by FC III GST incurred on FC s tax invoice for purchase of new car - Not claimable by HIJ blocked input tax under regulation 27 firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. Printed in Singapore. 9

10 Question 9: Answer No. - More for staff s personal benefit. firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. Printed in Singapore. 10

11 Question 10: Answer Yes. - Similar benefits are provided at other staff meetings in general firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. Printed in Singapore. 11

12 Question 11: Answer Yes. - Solely for paying purchases made on behalf of company and business entertainment firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. Printed in Singapore. 12

13 Question 12: Answers Gifts Pen costing $300 (with GST) Hamper costing $150 (with GST) Can claim input tax? Yes Yes Should account for deemed output tax? Yes, if input tax is claimed. Deemed supply = $300 No Watch costing $1,000 (without GST) Used computer costing $1,300 (with GST) NA Yes N/A Yes, if input tax is claimed. Deemed supply = $200 firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. Printed in Singapore. 13

14 Question 12: Answers (Cont d) Gifts Can claim input tax? Should account for deemed output tax? Meal allowance of $20 No No Lease of F&F of $500 (with GST) per month Maintenance fee of the serviced apartment of $150 (with GST) per month Yes (for April and May) No (from June onwards) Yes (for April and May) No (from June onwards) Yes, deemed supply = $500 (for April and May) No (from June onwards) N/A Chalet rental of $600 Yes No firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. Printed in Singapore. 14

15 kpmg.com/socialmedia kpmg.com/app 2016 KPMG Services Pte. Ltd. (Registration No: G), a Singapore incorporated company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.