3A Accounting System

Monday, February 9, 2015

What is Capital Goods?

Capital goods are normally defined as follows:-
- any goods which are capitalized for accounting purposes and in accordance with Generally Accepted Accounting Principles (GAAP) and,
- written off over several years.

The GST treatment on capital goods in Malaysia is as follows:-
(a) A supply of capital goods is standard-rated.
(b) Input tax can be claimed in full on all capital goods that are used to make wholly taxable supplies
(c) If capital goods are used solely for exempt-supply, no input tax can be claimed.
(d) Where capital goods are used for making both taxable and exempt supplies, input tax would need to be apportioned according to its proportional taxable use.
(e) Intangible assets such as trademark and goodwill are taxable supplies.

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...