QUESTION 4Two situations are given below.Situation 1DIY Sdn Bhd is a Malaysian tax resident company. DIY is involved in manufacturingbricks. DIY needs to know regarding sales tax implications in the manufacturingbusiness.The company plans to import special high-grade stones and carry out a change in thenature and quality of the materials by glazing them before sale.DIY's current sales is RM350,000 and is projected to be around RM400,000 for thenext few yearsa(i) Explain whether DIY Sdn Bhd activities will fall within the scope of manufacturingactivities for sales tax purposes.a(ii) Discuss on the sales tax registration requirement and advice whether DIY need to beregistered.6

Any person who manufactures taxable goods and has an annual turnover exceeding RM500,000 is…

Answered: DIY Sdn Bhd is a Malaysian tax resident…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Melbourne Awesome Ltd supplies a wide range of folding bicycles. Melbourne Awesome Ltd derives Australiansourced income for the current tax year comprising net income from trading of $80,000, franked distributionfrom public companies amounting to $28,000, (carrying an imputation credit of $12,000), unfrankeddistributions from resident private companies amounting to $25,000 and rental income of $5,500. MelbourneAwesome Ltd also have total deductions (Business Expenses) totaling $55,000.Required:Calculate the net tax payable by All Sports Ltd for the year ended 30 June 2019. (Assume company tax rate is30%)
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