After having a discussion with our tax agent, we have been advised to charge service tax of 6% for all customer with immediate effect.
According to Service Tax Regulations 2018, paragraph 3 of the First Schedule, where a company in a group of companies provides any taxable service specified in item (a), (b), (c), (d), (e), (f), (g), (h) or (i) in column 2 in Group G to any company within the same group of companies, such service shall not be a taxable service.
However, ServerLink Cloud Computing Sdn Bhd is SST registered in Group G - Digital Service that fall under item (l). Referring to Service Tax Policy No. 8-2020, item (5), has specifically stated that services in item (j), (k), (l) and (m) are not eligible for the group relief. Therefore, we are not able to grant same group exemption to customer who is also SST registered in Group G.