| # Deemed values OMV The supply of goods whose value is not considered (that is, deemed supply of assets belonging to a person who ceases to be a taxable person ) is deemed as a supply under certain conditions. The value of the supply with no consideration is based on the open market value (OMV) of that supply. A sales order can be processed for zero amount or a lower amount. The tax base value and the GST value must be calculated based on the OMV. Example ABC company bought furniture for the office at RM7,000. The company, decides to donate the furniture to a charity organization. The disposal of the furniture is a supply of goods by ABC . In identifying the value of the supply of the furniture, the company must consider the open market value of the furniture, at the time of the disposal (giving it to charity). Assuming that the open market value of the supply is RM6,800. The GST for the supply is : = RM6,800 X 6/106 = RM384.91 Implementing OMV on a sales order In the Sales Order - Lines (tdsls4100m900) session, create a sales order line. Click the order line. In the Sales Order Lines (tdsls4101m000) session, in the tax tab, set the value in the Tax Code field to Deemed Supplies. In the Sales Order - Lines (tdsls4100m900) session, for the specified order, select the OMV is Applicable check box and specify a value in the OMV in MYR field. Approve and process the sales order. Process and finalize the sales order invoice generated. Note The order is processed for, Order line Amount + Tax based on OMV – Discounts, if any. Use the Compose/Print/Post Invoices (cisli2200m000) session, to view the corresponding GST invoice Run the Print GST Return (GST - 03) (tfgld9421m00c) session. The tax base amount and the GST values are updated in the sections 5a, 5b and 19 of the report. |