Sales tax - Preventing double tax

6 important questions on Sales tax - Preventing double tax

What does Schedule C provide for registered manufacturers?

Schedule C provides exemption of sales tax to registered manufacturers on the acquisition of raw materials, components, and packaging materials to be used in manufacturing taxable goods.

What are the conditions for a sales tax deduction claim?

Conditions include:
  1. Supplier not connected to the registered manufacturer.
  2. Suppliers paid sales tax on goods sold to registered manufacturer.
  3. Taxable goods purchased used in manufacturing taxable goods.

How is the sales tax deduction rate determined?

Sales tax deduction is based on the total value of taxable goods purchased. Rates:
  • 5%: 2% deduction
  • 10%: 4% deduction
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What are the conditions for a drawback of sales tax?

Conditions include:
  • Exported within 6 months from tax payment.
  • Application within 3 months from export.
  • Goods not used after importation.
  • Not prohibited by Customs Act 1967.

What is the process for a registered manufacturer buying raw materials?

A registered manufacturer buys raw materials, components, and packaging materials from a supplier or non-registered manufacturer, applies for sales tax deduction if eligible.

What is the role of an approved agent in the sales tax system?

Approved agents (not manufacturing companies) buy raw materials on behalf of group companies which are manufacturers, to get exemption.

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