Dear Sirs
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.
The Solution...
Due to the nature of our business, we are unable to register under other SST categories. Therefore, we kindly advise you to proceed with the additional SST registration under "Group G – Digital Services and Electronic Media" in order to eligible for the SST tax exemption from ServerLink Cloud Computing Sdn. Bhd.
Please provide us your new SST Registration for "Group G – Digital Services and Electronic Media" supporting documents as prove.
This is an example of an IT support and software reseller company that is registered under multiple SST groups. One of them is "Digital Services and Electronic Media," which aligns with ServerLink Cloud Computing Sdn. Bhd. and qualifies the company to enjoy SST tax exemption.
