SST Exempted Service

This Article is for:

• ABSS Premier v22 and below
• ABSS Accounting v26 and below

Starting from 1^st January 2019, service tax exemption is applicable for service tax registered person in Group G (Professional Service) who acquires taxable services under Group G item (a), (b), (c), (d), (e), (f), (g), (h) and (i) from another service tax registered person in Group G (Professional Service). The exemption is not applicable for taxable services under item (j) and (k) of Group G.

Scenario

An SST registered audit firm Alpha gives part of its service job to another SST registered audit firm Beta.

The Beta audit firm once done the job will bill Alpha audit firm for the job rendered.

Since both of them are SST registered and falls under Group G Professional Service, Alpha will not be subjected to Service Tax. In this case, it is exempted from Service Tax.

The recording in ABSS Premier V22.1/Accounting V27.1 Software:

 1.   First of all, create a tax code for Service Tax Exempted.

Go to List > Tax Code > New

2.   Secondly, assign the created tax code in the transaction.

3.   Once done recording the transaction, you may generate the total sales value for the Service Exempted by going to Reports > GST/Sales Tax > Tax Detail Accrual/ Tax Summary Accrual.

4.   Finally key in the Total Sale Value of Service Exempted into Field 18c SST02 Submission Portal (MYSST).