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Deemed supplies GST MY

Hi All,

Need your help. How do you account for output deemed supplies under GST Malaysia. As per the rule you need to account items as deemed supplies which you give for free to your employees. In our scenario we do not bill our employees so how do I account for this?

Example: Lets say we buy watches as gift to our employees. Your buy watches from a vendor where you are incurring GST (posting to Input tax credit). At the same time you should post output GST under deemed supplies since you are giving them as gift to your employees and cannot bill them. How to we account this under output so it Zerorise the input credit claimed.

1) I created a tax code under input with input 6% and out put 6% but when I posted it is grossing the invoice amount which is not correct. I think the system will not allow to have input and output tax posting in one tax code. which means if we create tax code under input the system will only allow input tax posting.

2) I though not to claim input tax credit so you don't have to report in the return form.

Appreciate your inputs at the same time correct my understanding if wrong.


regards

Viru

Former Member
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