LAWS OF MALAYSIA
REPRINT
Act 151
SERVICE TAX ACT 1975
Incorporating all amendments up to 1 January 2006
PUBLISHED BY
THE COMMISSIONER OF LAW REVISION, MALAYSIA
UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968
IN COLLABORATION WITH
PERCETAKAN NASIONAL MALAYSIA BHD
2006
Laws of Malaysia
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ACT 151
SERVICE TAX ACT 1975
Date of Royal Assent
...
...
...
...
30 January 1975
Date of publication in the Gazette
...
30 January 1975
PREVIOUS REPRINTS
First Reprint
.........
... ... 1997
Second Reprint
.........
... ... 2001
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LAWS OF MALAYSIA
Act 151
SERVICE TAX ACT 1975
ARRANGEMENT OF SECTIONS
PART I
PRELIMINARY
Section
1.
Short title, application and commencement
2.
Interpretation
PART II
CHARGE TO TAX
3.
Charge to tax
4.
Determination of charge and value
5.
Rate of tax
6.
Powers of Minister to exempt and refund
PART III
TAXABLE PERSONS--LICENSING
7.
Person chargeable to tax
7A. Direction to treat persons as a single taxable person
Application for licence, issue, etc.
8.
8A. Voluntary licensing
9.
Surrender and revocation of licences
PART IV
INVOICES, RECORDS, RETURNS AND ASSESSMENT
10.
Invoices and receipts
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Section
10A. Production of invoices or receipt by computer
11.
Duty to keep records
12.
Furnishing of returns
13.
Assessment of tax
PART V
COLLECTION, RECOVERY, REFUND AND REMISSION
14.
When tax becomes due and payable
15.
Recovery of tax
16.
Penalty for late payment of tax
Joint and several liability of directors, etc.
17.
18.
Persons about to leave Malaysia
18A. Recovery of service tax, etc., from persons leaving Malaysia
Power to collect service tax, etc., from person owing money to taxable
19.
person
Payment of service tax, etc., short paid or erroneously refunded and
20.
payment by instalments
21.
Return of service tax or penalty overpaid or erroneously paid
21A. Deduction from return of refunded service tax
21B. Refund for bad debt
21C. Repayment of refund
22.
Remission
PART VI
INSPECTION, SEARCH, SEIZURE AND ARREST
23.
Persons bound to give information
Access to buildings, places, books, etc.
24.
25.
Magistrate may issue search warrant
26.
When search may be made without warrant
26A. Access to recorded information or computerized data
Seizure of books, documents, etc.
27.
28.
Power of arrest
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PART VII
OFFENCES
Section
Failure to comply with notice, etc.
29.
30.
Penalty for incorrect return
31.
Penalty for charging or collecting service tax by non-taxable person
32.
Penalty for evasion of service tax
33.
Attempts and abetments
34.
General penalty
35.
Offences by corporate bodies
PART VIII
PROVISIONS AS TO TRIALS AND PROCEEDINGS
(Deleted)
36.
37.
Sessions Court to have jurisdiction
37A. Obligation of secrecy
38.
Protection of informers from discovery
39.
Compounding of offences
40.
Conviction under other law
40A. Court order
PART IX
REGULATIONS
41.
Regulations
PART X
ADMINISTRATION AND MISCELLANEOUS
MATTERS
42.
Functions and powers of Director General and other officers
43.
Officers to be public servants
Authority cards, etc., to be produced
44.
45.
No costs or damages arising from seizure to be recoverable unless
seizure without reasonable or probable cause
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ACT 151
Section
Service of notices, etc.
46.
47.
Clerks and servants may transact business
47A. Transaction of business on behalf of taxable person
48.
Rewards
49.
Forms to be used
50.
Disputes and appeal
51.
Liquidator of company to give notice of winding up, and set aside tax
52.
Appointment of receiver to be notified to the Director General
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LAWS OF MALAYSIA
Act 151
SERVICE TAX ACT 1975
An Act to make provision for the charging, levying and collecting
of service tax.
[1 March 1975, P.U. (B) 52/1975]
BE IT ENACTED by the Seri Paduka Baginda Yang di-Pertuan
Agong with the advice and consent of the Dewan Negara and
Dewan Rakyat in Parliament assembled, and by the authority of
the same, as follows:
PART I
PRELIMINARY
Short title, application and commencement
1. (1) This Act may be cited as the Service Tax Act 1975 and
shall apply throughout Malaysia excluding Langkawi, Labuan and
Tioman.
(1A) This Act shall not apply to the area known as the Joint
Development Area.
(2) This Act shall come into force on such date as the Minister
may by notification in the Gazette appoint.
Interpretation
2. (1) In this Act, unless the context otherwise requires--
"calendar month" means a month reckoned according to the
Gregorian calendar;
"computer" has the meaning assigned thereto in section 3 of the
Evidence Act 1950 [Act 56];
"Customs" means the Royal Customs and Excise Department;
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ACT 151
"Director General" means the Director General of Customs and
Excise, appointed under subsection 3(1) of the Customs Act 1967
[Act 235];
"document" has the meaning assigned thereto in section 3 of the
Evidence Act 1950;
"electronic data interchange" means the transfer, from computer
to computer, of commercial and administrative transactions using
an agreed message standard to structure the data pertaining to a
transaction;
"goods" includes every kind and type of food, drink or thing
whatsoever;
"Joint Development Area" has the meaning assigned thereto in
section 2 of the Malaysia-Thailand Joint Authority Act 1990 [Act
440];
"Labuan" means the Island of Labuan and its dependent islands,
namely, Rusukan Besar, Rusukan Kecil, Keraman, Burong, Papan
and Daat;
"Langkawi" means Langkawi Island and all adjacent islands
lying nearer to Langkawi Island than to the mainland;
" M i n i s t e r " means the Federal Minister charged with the
responsibility for finance;
"penalty" means any charge due and payable under section 16;
"person" includes an individual, a firm, a society, an association,
a company and every other juridical person;
"prescribed" means prescribed by regulations made under this
Act;
"proper officer" means any officer acting in the fulfilment of his
duties under this Act, whether such duties are assigned to him
specially or generally, or expressly or by implication;
"regulations" means regulations made under this Act;
"senior officer of customs" means any senior officer of customs
as defined in subsection 2(1) of the Customs Act 1967;
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"surcharge" means any charge that is due and payable under
subsection 20(3);
"taxable period" means, subject to subsection 12(2), two calendar
months or part thereof ending on the last day of the second calendar
month;
"taxable person" means any person who is prescribed to be a
taxable person;
"taxable service" means any service which is prescribed to be
a taxable service;
"Tioman" means the Island of Tioman and the islands of Soyak,
Rengis, Tumok, Tulai, Chebeh, Labas, Sepoi and Jahat.
(2) (Deleted by Act A1182).
2A. For the purposes of this Act, a free zone shall be deemed to
be a place outside Malaysia.
In this section, the expression "free zone" has the same meaning
a s s i g n e d to it under section 2 of the Free Zones Act 1990
[Act 438].
PART II
CHARGE TO TAX
Charge to tax
3. Service tax shall be charged and levied in accordance with this
Act on any taxable service provided by any taxable person.
Determination of charge and value
4. For the purposes of this Act, the charge, premium or value on
which service tax is payable shall be ascertained as follows:
(a) in the case of taxable service for the--
(i) sale of goods by a taxable person to--
(A) a person independent of the taxable person,
the actual price for which the goods are
sold; or
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(B) a person not independent of the taxable
person, the price at which the goods would
have been sold in the ordinary course of
business to a person independent of the
taxable person;
(ii) provision of goods, where no charge is levied for
the provision of the goods, the price at which the
goods would have been sold in the ordinary course
of business to a person independent of the taxable
person;
(b) in the case of taxable service, other than the taxable
service specified in paragraph (a)--
(i) provided by a taxable person to a person independent
of the taxable person--
(A) the charge levied or collected; or
(B) the premium for insurance coverage, for
the taxable service;
(ii) provided by a taxable person to a person not
independent of the taxable person, the charge or
premium levied or collected for the taxable service
which would have been provided in the ordinary
course of business to a person independent of the
taxable person;
(iii) where no charge or premium is levied or collected,
the charge or premium which would have been
levied or collected in the ordinary course of business
for providing taxable service to a person independent
of the taxable person.
Rate of tax
5. (1) The Minister may by order published in the Gazette fix the
rate of service tax to be charged and levied under this Act.
(2) The Minister may from time to time by order published in
t h e Gazette vary or amend the rate of tax fixed under
subsection (1).
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(3) Any order made under subsections (1) and (2) shall at the
next meeting of the House of Representatives be laid on the table
of that House and shall, at the expiration of one hundred and
twenty days of being so laid or of such extended period as the
House of Representatives may by resolution direct, cease to have
effect if and insofar as it is not confirmed by resolution passed by
the House of Representatives within the said one hundred and
twenty days or, if such period has been extended, within such
extended period.
(4) Where an order ceases to have effect in whole or in part as
provided in subsection (3), then any service tax levied in pursuance
of such order or, as the case may be, of such part thereof as ceases
to have effect shall, subject to the provisions of subsection (5), be
repayable to the person by whom such service tax was paid.
(5) Except otherwise directed by the Minister no service tax
repayable under the provisions of subsection (4) shall be repaid,
unless the person entitled to such repayment makes a claim thereof
to the Director General within one year from the date on which
the order ceases to have effect in whole or in part as provided by
subsection (3); and such claim shall be made in writing and shall
contain such particulars as the Director General may by order
require.
Powers of Minister to exempt and refund
6. The Minister may, in any particular case, subject to such
conditions as he may deem fit to impose--
(a) exempt any person or class of persons from the payment
of the whole or any part of the service tax which otherwise
would have been payable by that person or that class of
persons;
(b) exempt any service or class of service from the whole or
any part of the service tax which otherwise would have
been payable;
(c) direct the refund to any person or class of persons of the
whole or any part of the service tax paid by that person
or that class of persons; or
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(d) direct the refund to any person or class of persons of the
whole or any part of the penalty paid by that person or
that class of persons.
PART III
TAXABLE PERSONS--LICENSING
Person chargeable to tax
7.  Subject to this Act, service tax shall be charged on and paid
by any taxable person who carries on business of providing taxable
service referred to in section 3.
Direction to treat persons as a single taxable person
7A. (1) Notwithstanding sections 7, 8 and 8A, where the Director
General is satisfied that any separation of business activities is
artificial, he may make a direction under this section directing that
the persons named in that direction shall be treated as a single
taxable person carrying on the activities of the business described
in that direction and that single taxable person shall not continue
to carry on the activities of such business unless he is licensed
within twenty-one days from the date the direction is served on
the last of such persons or from such later date as may be specified
in that direction.
(2) For the purposes of subsection (1), in determining whether
any separation of business activities is artificial, regard shall be
had to the extent to which the different persons carrying on those
business activities are closely bound to one another by financial,
economic and organizational links.
(3) The Director General may make a direction under this section
naming any person if the Director General is satisfied--
(a) that the person is providing or has provided taxable service;
(b) that the activities in the course of which the person provides
or has provided that taxable service form only part of
certain activities in the business and that the other activities
in that business (whether or not they are similar to the
activities carried on by that person) are being carried on
concurrently or previously, or both, by one or more other
persons; and
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(c) that if all the taxable service provided in that business
were taken into account, the person carrying on that
business would, at the time of such direction, be required
to be licensed by virtue of section 8.
(4) Any direction made under this section shall be served on
each of the persons named in it.
(5) Where, after a direction has been given under this section
specifying a description of the business, it appears to the Director
General that any person who has not been named in that direction
is providing taxable service in the course of activities which should
be regarded as part of the activities of the business, the Director
General may make and serve on that person a supplementary
direction referring to the earlier direction and the description of
business specified in it, and adding that person's name to those
of the persons named in the earlier direction with effect from--
(a) the date on which that person began to provide the taxable
service; or
(b) if the date of the earlier direction was later than the date
mentioned in paragraph (a), the date with effect from
which the single taxable person referred to in the earlier
direction is licensed under subsection (1).
( 6 ) W h e r e , immediately before any direction (including a
supplementary direction) is made under this section, any person
named in the direction is licensed in respect of taxable service
provided by him as mentioned in subsection (3) or (5), his licence
shall be revoked by the Director General with effect from--
(a) the date the single taxable person is licensed under
subsection (1); or
(b) such later date as may be specified in that direction,
and upon the revocation of his licence he together with all the
persons named in the direction shall be treated as a single taxable
person under this section.
(7) In relation to a business specified in a direction under this
section, the persons named in such direction together with any
person named in a supplementary direction relating to that business
(being the persons who together are to be treated as a single
taxable person) are in subsections (8) and (9) referred to as "the
constituent members".
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(8) Where any direction is made under this section, then for the
purposes of this Act--
(a) the single taxable person carrying on the business specified
in the direction shall be licensed in such name as the
persons named in the direction may jointly nominate by
notice in writing given to the Director General not later
than fourteen days after the date the direction is served
on the last of such person or, in default of such a nomination,
in such name as may be specified in the direction;
(b) any taxable service provided by one of the constituent
members in the course of the activities of the single
taxable person shall be treated as being taxable service
provided by the single taxable person;
(c) each of the constituent members shall be jointly and
severally liable for any service tax payable by the single
taxable person;
(d) without prejudice to paragraph (c), any failure by the
single taxable person to comply with any requirement
imposed by or under this Act shall be treated as a failure
by each of the constituent members severally; and
(e) subject to paragraphs (a) to (d), the constituent members
shall be treated as a partnership carrying on the business
of the single taxable person and any question as to the
scope of the activities of that business at any time shall
be determined accordingly.
(9) Where it appears to the Director General that any person
who is one of the constituent members should no longer be regarded
as such for the purposes of paragraphs 8(c) and (d) and the Director
General gives notice to that effect, that person shall not have any
liability by virtue of those paragraphs for anything done after the
date specified in that notice and accordingly on that date he shall
be treated as having ceased to be a member of the partnership
referred to in paragraph (8)(e).
Application for licence, issue, etc.
8. (1) Every taxable person who carries on a business of providing
taxable service shall apply to the senior officer of customs in the
prescribed form for a licence, and no taxable person shall carry
on such a business unless he is in possession of a licence issued
under subsection (2).
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(2) Subject to subsection (3), the Director General shall issue
a licence in the prescribed form.
(2A) Notwithstanding any other provisions in this Act or any
regulations, any person who is licensed under this section or section
8A shall remain as a taxable person providing taxable service, and
the provisions of this Act shall apply to him until his licence is
revoked.
(3) Before any licence is issued under this section, or where a
licence has been issued under this section, the Director General
may require the person applying for the licence, or the holder of
the licence, as the case may be, to give such security for the due
compliance by that person with the provisions of this Act and
generally for the protection of the revenue as the Director General
thinks fit; and where the Director General is at any time dissatisfied
with any security given, he may require a new security in lieu
thereof, or in addition thereto; and in default of such new security
being given the Director General may suspend any licence previously
issued. During any such suspension the holder of any licence
issued shall be deemed to be unlicensed.
(4) Any person licensed under this section shall carry on the
business only at the place or premises specified in the licence
issued under subsection (2).
(5) Where the whole or any part of a taxable person's business
of providing taxable service is transferred to another person, then
for the purpose of determining whether that other person is required
to be licensed under this section he shall be treated as having
carried on the business of providing taxable service before as well
as after the transfer of that business to him.
Voluntary licensing
8A. (1) Where any person who is not required to be licensed
under section 8 satisfies the Director General that he--
(a) provides taxable service; or
(b) is intending to carry on a business of providing taxable
service,
that person may apply to the Director General in the prescribed
form to be licensed under this Act and the Director General may
issue a licence to that person.
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(2) Where any person is licensed under subsection (1), he shall
be treated as a taxable person, and the provisions of this Act shall
apply to him.
Surrender and revocation of licences
9. (1) If any taxable person ceases to carry on business he shall
forthwith surrender his licence to the Director General.
(1A) Subject to this Act, where any person who is licensed
ceases to be a taxable person, he may apply in writing to the
Director General to surrender his licence.
(1B) Upon receipt of a person's application under subsection
(1A), the Director General may--
(a) if he is satisfied that the person has ceased to be a taxable
person, accept the surrender of his licence and that person
shall cease to be a taxable person; or
(b) if he is not satisfied that the person has ceased to be a
taxable person, reject his application to surrender his
licence and that person shall continue to be a taxable
person.
(2) Without prejudice to subsection 7A(6), if any taxable person--
(i) ceases to carry on a business of providing taxable service;
(ii) dies;
(iii) fails to provide taxable service by the date on which the
licence issued under section 8A is to take effect; or
(iv) being a company, is dissolved,
the Director General shall revoke the licence.
(3) If any taxable person fails to comply with, or is found acting
contrary to, the provisions of section 10, 10A, 11, 12 or 14, the
Director General may revoke the licence, and if that person continues
to carry on the business in respect of which the licence was issued,
he shall be deemed to carry on the business without a licence under
this Act.
(4) Before revoking a licence under subsection (2), the Director
General shall serve a notice of revocation of the licence on the
person to whom the licence was issued and that licence is revoked
with effect from the date as specified in the notice.
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(5) Before revoking a licence under subsection (3), the Director
General shall serve a notice on the person to whom the licence was
issued informing him of the proposed revocation and giving him
an opportunity to make representation on the matter.
(6) Where the Director General is satisfied, after considering
the representation of a person made under subsection (5) that the
licence of the person should be revoked, he shall serve a notice
of revocation of the licence on the person informing him that his
licence is revoked from the date specified in the notice.
PART IV
INVOICES, RECORDS, RETURNS AND ASSESSMENT
Invoices and receipts
10. (1) Every taxable person who provides any taxable service
shall, unless otherwise prescribed by regulations, issue an invoice
and a receipt in the national language or in the English language
to the customer in respect of the transaction and shall state in the
invoice and receipt the amount of service tax payable separately
from the charges for the taxable service provided.
(2) The amount of service tax payable shall be recoverable by
the taxable person from the customer.
(3) No invoice showing an amount which purports to be service
tax shall be issued--
(a) on the provisions of any service which is not taxable
service; or
(b) (Deleted by Act A1060)
(c) by a person who is not a taxable person.
Production of invoices or receipts by computer
10A. (1) Subject to subsection (2), for the purposes of any provision
under this Act in relation to an invoice or a receipt, a taxable
person shall be treated as having issued an invoice or a receipt to
a customer notwithstanding that there is no delivery of any equivalent
document in paper form to the customer if the requisite information
is recorded in a computer and--
(a) is transmitted to the customer by electronic means; or
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ACT 151
(b) is produced on any material other than paper and is delivered
to the customer.
(2) No provision in relation to invoices or receipts produced by
computer shall be treated as having been complied with unless the
taxable person and the customer--
(a) have obtained the Director General's approval in writing--
(i) to transmit the document by electronic means, or
to produce the document by means of a computer
on any material other than paper and to deliver that
document; or
(ii) to receive the document through that transmission
or delivery,
subject to such conditions as he may deem fit to impose;
and
(b) comply with such requirements as may be determined by
the Director General.
Duty to keep records
11. (1) Every taxable person shall keep in such books of account
or other records as the Director General may direct, full and true
records written up to date of all transactions which affect or may
affect his liability to service tax and shall keep those books of
account or other records in the national language or English.
(2) The books of account and other records which are required
to be kept in accordance with this section and duplicate copies of
invoices issued under section 10 shall be preserved for a period
of six years from the latest date to which the books of account,
records and invoices relate.
Furnishing of returns
12. (1) Every taxable person shall within twenty-eight days or
such extended period as may be allowed by the Director General
after the end of each taxable period deliver to the proper officer
a return in the prescribed form setting forth the aggregate amount
of the proceeds received during that taxable period in respect of
charges levied or collected for providing taxable service, the amount
of service tax payable and such other particulars as may be required
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by the Director General; and the return shall be verified by declaration
in the prescribed form.
(1A) Notwithstanding subsection (1), where any taxable person
ceases to carry on a business of providing taxable service or to be
a taxable person or where the licence of any taxable person is
suspended or revoked by the Director General such taxable person
shall immediately deliver to the proper officer--
(a) a return in the prescribed form for the last taxable period;
and
(b) if a return for the taxable period immediately preceding
the last taxable period is required to be delivered under
subsection (1), that return.
(1B) The return referred to in paragraph (1A)(a) shall state--
(a) the service tax, for the whole or any part of the payment
for any taxable service provided, not received within a
period of twelve calendar months preceding the last taxable
period; and
(b) the service tax on all taxable service provided in the last
taxable period.
(2) For the purposes of this section--
(a) where a taxable person closes his monthly business account
on a date other than the last day of a calendar month, the
taxable period shall be the period of two months ending
on that date;
(b) the last taxable period is the period of two calendar
months or part of it ending on the day the taxable person
ceases to carry on the business of providing taxable service
or to be a taxable person or the day the taxable person's
licence is suspended or revoked by the Director General.
Assessment of tax
13. (1) Any return furnished under section 12 may be accepted
by the proper officer as sufficient proof of the matters therein
contained, and service tax may be assessed by the proper officer
accordingly.
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(2) If the proper officer has reason to believe that the amount
of service tax shown in a return made by any taxable person under
section 12 as payable on any taxable service is less than the
amount payable under this Act, he may assess the tax at such
greater amount as he deems fit and a notice in writing of the
amount shall be served on that person.
(3) If the proper officer has reason to believe that service tax
is payable in respect of any taxable service under this Act, by any
person who has not made a return in respect thereof, he may assess
the service tax at such amount as he deems fit and a notice in
writing of the amount shall be served on that person.
PART V
COLLECTION, RECOVERY, REFUND AND
REMISSION
When tax becomes due and payable
14. (1) The service tax chargeable under this Act shall be due at
the time when payment is received for the taxable service provided
to the customer by the taxable person.
(2) Where the whole or any part of the payment for any taxable
service provided by the taxable person is not received from the
customer within a period of twelve calendar months from the date
of the invoice for the taxable service provided, service tax shall
be due on the day following that period of twelve calendar months.
(3) Any service tax which falls due under subsection (1) or (2)
during any taxable period shall be payable to the Director General
within twenty-eight days from the expiration of that taxable period.
(4) Notwithstanding subsection (1), (2) or (3), service tax required
to be accounted in any return made under subsection 12(1A) shall
be due and payable on the day the return is required to be delivered
to the proper officer.
Recovery of tax
15. (1) Without prejudice to any other remedy, any service tax
due and payable and any penalty or surcharge payable under this
Act may be recovered as a civil debt due to the Government.
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21
(2) In any suit to recover the service tax, penalty or surcharge,
if any, under subsection (1), the production of a certificate signed
by the Director General giving the name and address of the taxable
person and the amount of the service tax, penalty or surcharge, if
any, due by him shall be sufficient evidence of the amount so due
by him and sufficient authority for the court to give judgment for
the said amount.
(3) Any penalty or surcharge imposed under this Act shall, for
the purposes of this Act and the Limitation Act 1953 [Act 254],
the Limitation Ordinance of Sabah [Sabah Cap. 72.] or the Limitation
Ordinance of Sarawak [Swk. Cap. 49], as the case may be, be
recoverable as if it were service tax due and payable under this
Act and accordingly section 6(4) of the Limitation Act 1953,
section 3 of the Limitation Ordinance of Sabah or section 3 of the
Limitation Ordinance of Sarawak, as the case may require, shall
not apply to that penalty or surcharge.
(4) Where an invoice shows a provision of taxable service as
having taken place with service tax chargeable on it, there shall
be recoverable from the taxable person who issued the invoice an
amount equal to--
(a) that which is shown in the invoice as service tax; or
(b) so much of the total amount shown as payable as is
to be taken as representing service tax, if service tax
is not separately shown in the invoice,
for the provision of such taxable service.
(5) Subsection (4) shall also apply where--
(a) the invoice, in which is stated an amount which purports
to be service tax as chargeable, is not an invoice issued
under section 10 or 10A;
(b) the invoice was issued by a person who was not a taxable
person and who had provided either a taxable service or
a non-taxable service for which an amount which purports
to be service tax was chargeable; or
(c) the invoice was issued by a taxable person who had
provided a non-taxable service for which an amount which
purports to be service tax was chargeable,
and any amount which purports to be service tax shall be paid
immediately by that person and, in default of payment, may be
recovered as a civil debt due to the Government.
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Penalty for late payment of tax
16. Where any amount of service tax deemed payable remains
unpaid after the last day on which it is payable under section 14
or repayable under section 21C, as the case may be--
(a) a penalty equal to ten per cent of such unpaid amount
shall thereupon be payable;
(b) if the service tax due and payable remains unpaid for
more than thirty days after the last day on which it was
so payable or repayable the rate of penalty under paragraph
(a) on such unpaid service tax shall be increased by ten
per cent for the second period of thirty days after such
last day and for every succeeding period of thirty days
or part thereof during which such amount remains unpaid
to a maximum penalty of fifty percent.
Joint and several liability of directors, etc.
17. Where service tax, penalty or surcharge is due and payable
by--
(a) a company;
(b) a firm; or
(c) a society, an association or other body of persons,
then notwithstanding anything to the contrary in this Act or in any
other Act, the directors of such company or the partners of such
firm or members of such society, association or other body of
persons, as the case may be, shall, together with such company,
firm, society, association or other body of persons be jointly and
severally liable for the service tax, penalty or surcharge:
Provided that in relation to a company that is being wound up,
the directors of such company shall only be so liable where the
assets of the company are insufficient to meet the amount due,
after paying any sums having priority under the Companies Act
1965 in relation to the application of the assets of the company
in such winding up over the service tax or penalty.
Persons about to leave Malaysia
18. If the Director General has reason to believe that a taxable
person is about to leave Malaysia before any service tax due by
him becomes payable in accordance with the provisions of this
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23
Act, the service tax shall, if the Director General deems fit, be
payable on such earlier date as he may determine and, if the
whereabouts of the taxable person are known by the Director
General, the taxable person shall be notified accordingly.
Recovery of service tax, etc., from persons leaving Malaysia
18A. (1) Where the Director General has reason to believe that
any person is about or is likely to leave Malaysia without paying--
(a) any service tax payable by him;
(b) any penalty payable by him under section 16;
(c) any surcharge payable by him under subsection 20(3); or
(d) any other moneys recoverable from him under this Act,
he may issue to any Director of Immigration a certificate containing
particulars of the service tax, penalty, surcharge or other moneys
so payable with a request that such person be prevented from
leaving Malaysia unless and until he pays the service tax, penalty,
surcharge or other moneys so payable, or furnishes security to the
satisfaction of the Director General for their payment.
(2) Subject to any order issued or made under any written law
for the time being in force relating to banishment or immigration,
any Director of Immigration who receives a request under subsection
(1) in respect of a person shall exercise all measures which may
include the removal and retention of any certificate of identity,
passport, exit permit or other travel documents in relation to that
person as may be necessary to give effect to the request.
(3) The Director General shall cause a notice of the issue of a
certificate under subsection (1) to be served personally or by
registered post on the person to whom the certificate relates:
Provided that the non-receipt of the notice by that person shall
not invalidate anything done under this section.
(4) Where the person in respect of whom a certificate has been
issued under subsection (1) produces on or after the date of the
certificate a written statement signed by the Director General stating
that all the service tax, penalty, surcharge or other moneys specified
in the certificate have been paid, or that security has been furnished
for its payment, that statement shall be sufficient authority for
allowing that person to leave Malaysia.
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ACT 151
(5) No legal proceedings shall be instituted or maintained against
the Government, a State Government or any other public officer
in respect of anything lawfully done under this section.
(6) In this section, "Director of Immigration" means any Director
of Immigration appointed under subsection 3(1A) of the Immigration
Act 19591963 [Act 155].
Power to collect service tax, etc., from person owing money to
taxable person
19. (1) Where any sum by way of service tax, penalty or surcharge
is due and payable by a taxable person, the Director General may,
by notice in writing (a copy of which shall be forwarded to the
taxable person at his last known address) require--
(a) any person by whom any money is due or accruing or
may become due to the taxable person;
(b) a person who holds or may subsequently hold money for
or on account of the taxable person; or
(c) any person having authority from some other person to
pay money to the taxable person,
to pay to him forthwith, or within such period as the Director
General may allow, such money (not being salary or wages due
to the taxable person) or so much thereof as is sufficient to pay
the sum due and payable by the taxable person as aforesaid.
(2) All payments made pursuant to a notice under this section
shall be deemed to have been made on behalf of the taxable person
and with his authority and the authority of all other persons concerned.
Payment of service tax, etc., short paid or erroneously refunded
and payment by instalments
20. (1) Where--
(a) the whole or any part of any service tax, penalty or other
moneys payable under this Act has not been paid; or
(b) the whole or any part of any service tax, penalty or other
moneys after having been paid has been erroneously
refunded,
then, provided a demand is made within three years from the date
on which the service tax, penalty or other moneys were payable,
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25
or the deficient service tax, penalty or other moneys were paid,
or the refund was made, as the case may be, the person--
(aa) liable to pay--
(i) the service tax, penalty or other moneys; or
(ii) the deficient service tax, penalty or other moneys;
or
(bb) to whom the refund was erroneously made,
shall pay the service tax, penalty or other moneys, or the deficient
service tax, penalty or other moneys, or repay the refund erroneously
paid to him, as the case may be.
(2) The Director General may allow the service tax or penalty
referred to in subsection (1) to be paid by instalments, under such
circumstances as may be prescribed by regulations, in such amounts
and on such dates as he may determine; and where the amount of
service tax is allowed to be paid by instalments under this subsection,
paragraph 16(b) shall not be applicable to such amount as from
the date the Director General allows such payment by instalments.
(3) If there is a default in the payment of any one instalment
under subsection (2) on its due date for the payment of the balance
of the amount payable, then the whole outstanding balance shall
become due and payable on that date and shall, without any further
notice being served on the person liable to pay the amount due,
be subject to a surcharge equal to ten per cent of that balance and
such surcharge shall be recoverable as if it were due and payable
under this Act.
Return of service tax or penalty overpaid or erroneously paid
21. It shall be lawful for the Director General, if it is proved to
his satisfaction that any service tax or penalty has been overpaid
or erroneously paid under this Act, to order the refund of the
service tax or penalty that was overpaid or erroneously paid subject
to such limit as may be prescribed by regulations:
Provided that--
(a) no such refund shall be allowed unless a claim in respect
of it is made in the prescribed form within one year after
the overpayment or erroneous payment was made; and
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ACT 151
(b) the Director General may reduce or altogether disallow
any refund due under this section to the extent that the
refund would unjustly enrich the claimant.
Deduction from return of refunded service tax
21A. (1) The Director General may approve, subject to such
conditions as he may deem fit to impose, an application by any
taxable person to deduct from time to time from his tax return
referred to in subsection 12(1) the amount of service tax paid but
subsequently refunded to his customer by reason of--
(a) cancellation of taxable service;
(b) termination of taxable service; or
(c) such other reasons as may be approved by the Director
General.
(2) The taxable person shall make the deduction referred to in
subsection (1) within one year after the payment was made, or
such extended period as may be approved by the Director General.
Refund for bad debt
21B. (1) Any person who is or has ceased to be a taxable person
may make a claim to the Director General for a refund of the whole
or any part of the service tax paid by him in respect of taxable
service if--
(a) the service tax has been paid by such person on or after
1 January 2003;
(b) the whole or any part of the service tax payable to such
person has been written off in his accounts as bad debts;
and
(c) the Director General is satisfied that all reasonable efforts
have been made by such person to recover the service
tax.
(2) Where the person mentioned in subsection (1)--
(a) has not received any payment in respect of the provision
of taxable service, such person may make a claim for the
whole of the service tax paid; or
Service Tax
27
(b) has received any payment in respect of the provision of
taxable service, such person may make a claim for the
difference between the service tax paid and an amount
calculated in accordance with the following formula:
AxC
B
where
A
is the payment received in respect of
the provision of such taxable service;
B
is the sale value of such taxable service
plus service tax payable on such service;
and
C
is the service tax payable on such
service.
(3) The person mentioned in subsection (1) may make a claim
for the refund within six years from the date the service tax is paid
by him.
(4) For the purpose of this section, "bad debt" means the
outstanding amount for the payment in respect of the provision of
taxable service including service tax which is due to the person
but has not been paid to, and is irrecoverable by the person."
Repayment of refund
21C. Where a refund of service tax has been made under section
21B by the Director General to a person and any payment in
respect of the provision of taxable service for which the service
tax is payable is subsequently received by the person, the person
shall repay to the Director General an amount calculated in accordance
with the following formula:
AxC
B
where
A
is the payment received in respect of
the provision of such taxable service;
B
is the sale value of such taxable service
plus service tax payable on such service;
and
C
is the service tax payable on such
service.
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ACT 151
Remission
22. The Minister may, if he thinks it just and equitable to do so,
and subject to such conditions as he may deem fit to impose, remit
the whole or any part of any service tax or other moneys due and
payable under this Act, or the whole or any part of any penalty
payable under the provisions of section 16.
PART VI
INSPECTION, SEARCH, SEIZURE AND ARREST
Persons bound to give information
23. (1) Every person having information about any matter into
which it is the duty of the proper officer to inquire shall upon
being required by him to do so, give such information.
(2) Every person required by the proper officer to produce a
document or other thing which is within the power of such person
to produce, and which is a document or thing required under this
Act or a document or thing used in any transaction relating to
service tax or a document or thing into which it is the duty of the
proper officer to inquire under this Act, shall produce such document
or thing.
Access to buildings, places, books, etc.
24. (1) Any proper officer shall for the purposes of this Act at
all times have full and free access to all buildings, places, books,
data, documents or other records for the purpose of ascertaining
the amount of service tax to be payable by any person under this
Act, and may, without fee or reward, inspect, copy or make extracts
from any such books, data, documents or other records.
(2) Any proper officer may take possession of any such books,
data, documents or other records where in his opinion--
(a) the inspection, copying or extraction thereof cannot
reasonably be performed without taking possession thereof;
(b) the books, data, documents or other records may be
interfered with or destroyed unless possession thereof is
taken; or
(c) the books, data, documents or other records may be required
as evidence in proceedings for an offence against this
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29
Act or in proceedings for the recovery of service tax,
penalty, surcharge or other moneys payable under this
Act.
(3) (Deleted by Act A1111).
(4) (Deleted by Act A1111).
Magistrate may issue search warrant
25. (1) Whenever it appears to any Magistrate, upon written
information upon oath and after any inquiry which he may think
necessary, that there is reasonable cause to believe that in any
dwelling house, shop or other building or place or on board any
vessel or aircraft, there are concealed or deposited any books,
documents or things which may afford evidence of an offence
against this Act, the Magistrate may issue a warrant authorizing
any proper officer named therein, at any time and with or without
assistance to enter the dwelling house, shop or other building,
place, vessel or aircraft and there to search for and seize the books,
documents or things.
(2) The officer authorized in accordance with subsection (1)
may if it is necessary so to do--
(a) break open any outer or inner door of the dwelling house,
shop or other building, place or vessel or aircraft and
enter every part thereof, if necessary forcibly;
(b) remove by force any obstruction to such entry, search or
seizure as he is empowered to effect;
(c) detain every person found in the dwelling house, shop or
other building, place, vessel or aircraft until the search
has been completed.
When search may be made without warrant
26. Whenever it appears to the senior officer of customs that there
is reasonable cause to believe that in any dwelling house, shop or
other building, or place, or on board any vessel or aircraft, there
are concealed or deposited any books, documents or things which
may afford evidence of an offence against this Act, and if he has
reasonable grounds for believing that by reason of the delay in
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ACT 151
obtaining a search warrant the books, documents or things are
likely to be removed, he may exercise in, upon and in respect of
the dwelling house, shop or other building, place, vessel or aircraft
all the powers mentioned in section 25 in the same manner as if
he were empowered so to do by a warrant issued under that section.
Access to recorded information or computerized data
26A. (1) Any proper officer exercising his powers under sections
24, 25 and 26 shall be given access to any recorded information
or computerized data, whether stored in a computer or otherwise.
(2) In addition, a proper officer exercising his powers under
sections 24, 25 and 26--
(a) may inspect and check the operation of any computer and
a n y associated apparatus or material which he has
reasonable cause to suspect is or has been used in connection
with that information or data; and
(b) may require--
(i) the person by whom or on whose behalf the proper
officer has reasonable cause to suspect the computer
is or has been so used; or
(ii) the person having charge of, or is otherwise concerned
with, the operation of the computer, apparatus or
material,
to provide him with such reasonable assistance as he may
require for the purposes of this section.
(3) For the purposes of subsection (1), "access" includes being
provided with the necessary password, encryption code, decryption
code, software or hardware and any other means required to enable
comprehension of recorded information or computerized data.
Seizure of books, documents, etc.
27. All books, documents or things in respect of which the senior
officer of customs or the proper officer has reasonable cause to
suspect that there has been committed any offence against this Act
or a breach of any condition subject to which any licence has been
issued under this Act and any books, documents or things which
may reasonably be believed to have a bearing on the case, may
be seized by that officer.
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31
Power of arrest
28. (1) Any senior officer of customs and proper officer may
arrest without warrant--
(a) any person found committing or attempting to commit or
employing or aiding any person to commit or abetting
the commission of, an offence against this Act;
(b) any person whom he may reasonably suspect to have in
his possession any books, documents or things liable to
seizure under this Act;
(c) any person whom he may reasonably suspect to have
committed an offence against this Act,
and that officer may search or cause to be searched any person so
arrested:
Provided that--
(a) any person arrested by a proper officer who requests that
his person be searched in the presence of a senior officer
of customs shall not be searched except in the presence
of and under the supervision of that officer, but that
person may be detained until the arrival of that officer,
or taken to any office or police station where that officer
may be found;
(b) any belonging of any person who requests to be present
when it is searched and so presents himself within a
reasonable time shall not be searched except in his presence;
(c) no female shall be searched except by another female
with strict regard to decency.
(2) Every person arrested under this section shall be taken to
a police station or detained in the custody of the proper officer.
(3) If any person liable to arrest under this Act is not arrested
at the time of committing the offence for which he is so liable,
or after arrest makes his escape, he may at any time thereafter be
arrested and dealt with as if he had been arrested at the time of
committing the offence.
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ACT 151
(4) Every person so arrested may be released from custody--
(a) on his depositing such reasonable sum of money as the
proper officer may require;
(b) on his executing a bond, with such surety, as the proper
officer may require; or
(c) on his depositing such reasonable sum of money as the
proper officer may require and his executing a bond, with
such surety as the proper officer may require.
(5) Any person who has been released from custody under
subsection (4) may be arrested without warrant by any proper
officer--
(a) if such officer has reasonable grounds for believing that
any condition on or subject to which such person was
released or otherwise admitted to bail has been or is
likely to be breached; or
(b) on being notified in writing by the surety of such person
that such person is likely to breach any condition on or
subject to which such person was released and that the
surety wishes to be relieved of his obligation as surety.
PART VII
OFFENCES
Failure to comply with notice, etc.
29. Without prejudice to any other liability incurred under this
Act, any person who--
(a) fails or refuses to comply with the requirements of section
7, 7A, 8, 10, 10A, 11, 12, 14 or 19;
(b) carries on business at any place or premises not specified
in the licence issued under section 8 or 8A;
(c) fails or refuses to produce any book, document or thing
for the examination or retention by the proper officer in
accordance with the requirements of this Act;
(d) fails or refuses to give correct information or refuses to
give any information which he is required to give relating
to service tax;
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33
(e) pays a lesser amount of service tax than is required by
this Act;
(ea) contravenes subsection 47A(2);
(f) in any way obstructs any proper officer in the discharge
of his functions under this Act; or
(g) contrary to subsection 10(3) issues an invoice showing
an amount which purports to be service tax,
shall be guilty of an offence against this Act, and shall be liable
on conviction to a fine not exceeding five thousand ringgit or to
imprisonment not exceeding two years or to both.
Penalty for incorrect return
30. Any person who makes an incorrect return under this Act or
the regulations by omitting therefrom any information or gives any
incorrect information in relation to any matter affecting his own
liability to service tax or the liability of any other person or a firm
or an association of persons shall be guilty of an offence against
this Act and shall be liable on conviction to a fine not exceeding
five thousand ringgit or to imprisonment for a term not exceeding
two years or to both.
Penalty for charging or collecting service tax by non-taxable
person
31. (1) No person shall charge or collect from any person any
sum of money for the purpose of paying service tax levied under
this Act in respect of any service provided by him or on his behalf
unless he is liable under this Act to pay such service tax.
(2) Any person who contravenes the provisions of this section
shall be guilty of an offence against this Act and shall be liable
on conviction to a fine not exceeding five thousand ringgit or to
an imprisonment of two years or to both.
Penalty for evasion of service tax
32. (1) Any person who wilfully with intent to evade or to assist
any other person to evade service tax--
(a) omits from a return made under this Act or the regulations
any information in relation to any matter affecting the
amount of his or other person's chargeability to service
tax;
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ACT 151
(b) makes a false statement or entry in any return, claim or
application made under this Act or the regulations;
(c) gives any false answer whether verbally or in writing to
any question or request for information asked or made
in pursuance of this Act or the regulations;
(d) prepares or maintains or authorizes the preparation or
maintenance of any false book of accounts, false invoices
or other false records, or falsifies or authorizes the
falsification of any book of accounts, invoices or records;
or
(e) makes use or authorizes the use of any fraud, art or
contrivance,
shall be guilty of an offence against this Act and shall be liable
on conviction to a fine not exceeding fifty thousand ringgit or to
imprisonment for a term not exceeding three years or to both.
(2) Where in any proceedings under this section it is proved
that a false statement or false entry (whether by omission or otherwise)
has been made in any return, claim or application furnished under
this Act or the regulations by or on behalf of any person or in any
books of account, invoices or other records maintained by or on
behalf of any person, that person shall be presumed until the
contrary is proved to have made that false statement or entry with
intent to evade service tax.
(3) A reference in this section to a person who makes use of
any fraud, art or contrivance, or authorizes the use of any fraud,
art or contrivance, to evade service tax includes a reference to a
person who, without the authority of the Director General--
(a) destroys, damages, erases or otherwise manipulates the
data stored in, or used in connection with, a computer;
(b) introduces into or records or stores in a computer, by any
means, data for the purpose of--
(i) destroying, damaging, erasing or altering other data
stored in that computer; or
(ii) interfering with, interrupting or obstructing the lawful
use of that computer, or the data stored in that
computer; or
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35
(c) otherwise uses a computer,
the purpose or effect of which is to evade service tax.
(4) For the purposes of subsection (3), "data" includes any
computer program or part of a computer program being a program
approved by the Director General for use under section 10, 10A,
11, or any regulations.
Attempts and abetments
33. Whoever attempts to commit an offence against this Act, or
abets the commission of such offence, shall be punished with the
punishment provided for such offence.
General penalty
34. Any omission or neglect to comply with and any act done or
attempted to be done contrary to the provisions of this Act or the
regulations, and in respect of which no penalty is expressly provided
shall be an offence against this Act and the offender shall be liable
on conviction to a fine not exceeding five thousand ringgit or to
imprisonment for a term not exceeding two years or to both.
Offences by corporate bodies
35. (1) Where an offence under this Act or the regulations has
been committed by a company, a firm, a society, an association
or other body of persons, any person who at the time of the
commission of the offence was a director, manager, secretary or
other similar officer or a partner of the company, firm, society,
association or other body of persons or was purporting to act in
such capacity shall be deemed to be guilty of that offence unless
he proves that the offence was committed without his consent or
connivance and that he exercised all such diligence to prevent the
commission of the offence as he ought to have exercised, having
regard to the nature of his functions in that capacity and to all the
circumstances.
(2) Where any person would be liable under this Act to any
punishment or penalty for any act, omission, neglect or default he
shall be liable to the same punishment or penalty for every such
act, omission, neglect or default of any clerk, servant or agent, or
of the clerk or servant of that agent provided that such act, omission,
neglect or default was committed by that clerk or servant in the
course of his employment or by that agent when acting on behalf
of that person or by the clerk or servant of that agent when acting
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ACT 151
in the course of his employment in such circumstances that had
such act, omission, neglect or default been committed by the agent
his principal would have been liable under this section.
PART VIII
PROVISIONS AS TO TRIALS AND PROCEEDINGS
(Deleted by Act A1111).
36.
Sessions Court to have jurisdiction
37. Notwithstanding the provisions of any written law to the contrary,
a Sessions Court shall have jurisdiction to try any offence under
this Act and to impose punishment under this Act for any such
offence.
Obligation of secrecy
37A. (1) Except as provided under section 38, the name and address
of an informer and the substance of the information received from
an informer shall be kept secret and shall not be disclosed by any
proper officer or any person who in the ordinary course of his
duties comes into possession of or has control of or access to such
information to any person except the designated proper officer
authorized by the Director General.
(2) Any person who contravenes subsection (1) shall be guilty
of an offence against this Act and shall be liable on conviction to
a fine not exceeding ten thousand ringgit or to imprisonment for
a term not exceeding five years or to both.
Protection of informers from discovery
38. (1) Except as hereinafter provided, no witness in any civil or
criminal proceedings under this Act shall be obliged or permitted
to disclose the name or address of an informer, or the substance
of the information received from him, or state any matter which
might lead to his discovery.
(2) Subject to subsection (3), if any books, documents or papers
which are produced in evidence or liable to inspection in any civil
or criminal proceeding under this Act, contain any entry in which
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37
any informer is named or described or which might lead to his
discovery, the court shall cause all such passages to be concealed
from view or to be obliterated, but only to the extent necessary
to protect the informer from discovery.
(3) If on trial for any offence under this Act, the court, after
full enquiry into the case, believes that the informer wilfully made
in his complaint a material statement which he knew to be false
or did not believe to be true, or if in any other proceedings the
court is of opinion that justice cannot fully be done between the
parties thereto without the discovery of the informer, it shall be
lawful for the court to require the production of the original complaint,
if in writing, and permit enquiry and require full disclosure concerning
the informer.
Compounding of offences
39. Any senior officer of customs may compound any offence
which is prescribed to be a compoundable offence by accepting
from the person reasonably suspected of having committed such
offence a sum of money not exceeding five thousand ringgit.
Conviction under other law
40. Nothing contained in this Act shall prevent the prosecution,
conviction and punishment of any person according to the provisions
of any other written law for the time being in force in Malaysia
or any part thereof:
Provided that no person shall be punished more than once for
the same offence.
Court order
40A. Where any person is found guilty of an offence under section
29 or 32, the court before which that person is found guilty shall
order that person to pay to the Director General the amount of
service tax due and payable, or any penalty payable under this Act,
if any, as certified by the Director General and such service tax
or penalty shall be recoverable in the same manner as a fine as
provided under section 283 of the Criminal Procedure Code
[Act 593].
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ACT 151
PART IX
REGULATIONS
Regulations
41. The Minister may make regulations to prescribe and regulate--
(a) the issue of licence;
(b) the place at which the service tax is to be paid and
collected;
(c) the remission at the discretion of the Director General of
small amounts of service tax;
(ca) the circumstances under which payment by instalments
may be allowed;
(cb) the issuance of invoices or receipts;
(cc) the production of invoices or receipts by computer;
(cd) all matters relating to bad debts for the purposes of this
Act;
(d) the forms to be used under and for purposes connected
with this Act;
(e) anything required or permitted in this Act to be prescribed
or regulated;
(f) generally to give effect to the provisions of this Act.
PART X
ADMINISTRATION AND MISCELLANEOUS MATTERS
Functions and powers of Director General and other officers
42. (1) The Director General shall have the superintendence of
all matters relating to the service tax, subject to the direction and
control of the Minister.
(2) Subject to the general direction and supervision of the Director
General, all officers of Customs and Excise appointed under section
3 of the Customs Act 1967 and holding the rank of Superintendent
or any rank higher than that of Superintendent shall have and
exercise all powers conferred on the Director General by or under
this Act.
Service Tax
39
(3) It shall be the duty of any proper officer to enforce, and
ensure due compliance with, the provisions of this Act, and to
make all due enquiries in relation thereto.
(4) Every person employed on any duty or service relating to the
service tax by the order or with the concurrence of the Director
General (whether previously or subsequently expressed) shall be
deemed to be the proper officer for that duty or service.
Officers to be public servants
43. Every person employed on any duty or service relating to the
service tax shall be deemed to be a public servant within the
meaning of the Penal Code [Act 574].
Authority cards, etc., to be produced
44. (1) Every officer when acting against any person under this
Act, shall, if not in uniform, on demand declare his office and
produce to the person against whom he is acting such badge or
authority card as he has been directed to carry under subsection
9(1) of the Customs Act 1967.
(2) It shall not be an offence for any person to refuse to comply
with any request, demand or order made by any officer acting or
purporting to act under this Act, if such officer is not in uniform
and refuses to declare his office and produce his badge or authority
card on demand being made by such person.
No costs or damages arising from seizure to be recoverable
unless seizure without reasonable or probable cause
45. No person shall in any proceedings before any court in respect
of the seizure of any thing seized in the exercise or the purported
exercise of any power conferred under this Act, be entitled to the
costs of the proceedings or to any damages or other relief other
than an order for the return of the thing or the payment of its value
unless the seizure was made without reasonable or probable cause.
Service of notices, etc.
46. (1) Every notice, direction or other document required by this
Act to be served on any person may be served--
(a) personally upon that person; or
(b) by sending it to that person by registered post.
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ACT 151
(2) A notice, direction or other document sent by registered
post to a person shall be deemed to have been served on that
person at the time at which it would have been delivered to that
person in the ordinary course of the post if such notice, direction
or other document was addressed--
(a) in the case of a company, a firm, a society, an association
or other body of persons--
(i) to its registered office;
(ii) to its last known address; or
(iii) to any person authorized by it to accept service of
process; and
(b) in the case of an individual, to his last known address.
Clerks and servants may transact business
47. The clerks or servants of any person may transact business
generally with any proper officer on behalf of the person:
Provided that an officer may refuse to transact business with the
clerk or servant unless the person identifies such clerk or servant
to the officer as empowered to transact.
Transaction of business on behalf of taxable person
47A. (1) Subject to section 47, no person shall transact any business
in relation to this Act on behalf of any taxable person, except on
matters with regard to--
(a) refund;
(b) remission;
(c) exemption; or
(d) such other matters as may be approved by the Director
General.
(2) The person who transacts business on any of the matters
stated in subsection (1) on behalf of a taxable person shall--
(a) produce a letter of authorization from the taxable person
whom he represents; and
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41
(b) where any prescribed form is required to be submitted
for the purposes of the matters being transacted, submit
the form that has been signed by the taxable person,
except where otherwise allowed by a senior officer of
customs.
Rewards
48. The Director General may order such rewards as he may deem
fit to be paid to any officer or other person for services rendered
in connection with the detection of any offences against this Act.
Forms to be used
49. Where any form has been prescribed under section 41 no
person shall, for the purpose of this Act, use any form which is
not printed or issued by authority of the Director General:
Provided that the Director General may, at his discretion and
subject to such conditions as he may deem fit to impose, permit
any person to use forms which are not so printed or issued as
aforesaid, or permit the use of any form submitted through an
electronic data interchange.
Disputes and appeal
50. (1) Where any person disputes the decision of a proper officer
acting in the course of duty under section 42 he may appeal therefrom
to the Director General whose decision on such dispute shall,
subject to subsection (2), be final.
(2) Any person aggrieved by a decision of the Director General
may within thirty days after being notified of such decision--
(a) in cases relating to the refund of the service tax under
section 21B, appeal to the court; or
(b) in other cases and matters, appeal to the Minister, whose
decision shall be final and not be subject to review in any
court.
Liquidator of company to give notice of winding up, and set
aside tax
51. (1) Where after the passing of this Act an effective resolution
is passed or an order is made for the winding up of a company
to which a licence under section 8 or 8A is issued, the liquidator
of the company shall give notice thereof to the Director General
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42
ACT 151
within fourteen days after the passing of the resolution or the
making of the order, and shall before disposing of any of the assets
of the company set aside such sum out of the assets as appears to
the Director General to be sufficient to provide for any service tax
that there is or will thereafter become payable in respect of the
company, and shall pay such service tax.
(2) A liquidator of any such company who fails to give notice
to the Director General within the time specified in subsection (1)
or fails to provide for payment of the service tax as required by
that subsection shall be personally liable for any service tax that
is or becomes payable as aforesaid.
(2A) Any liquidator who fails to comply with subsection (1)
shall be guilty of an offence against this Act and shall be liable
on conviction to a fine not exceeding ten thousand ringgit.
(3) Where two or more persons are appointed liquidators or are
required by law to carry out the winding up of any such company
the obligations and liabilities attaching to a liquidator under this
section shall attach to all such persons jointly and severally, subject
to a right of contribution between themselves as in cases of contract.
Appointment of receiver to be notified to the Director General
52. (1) Where a receiver is appointed of the property of a taxable
person to whom a licence under section 8 or 8A is issued, the
receiver shall give notice thereof to the Director General within
fourteen days after the appointment being made, and shall before
disposing of any of the assets of that taxable person set aside such
sum out of the assets as appears to the Director General to be
sufficient to provide for any service tax that there is or will thereafter
become payable in respect of the taxable service that have been
provided by that taxable person before the appointment of the
receiver, and shall pay such service tax.
(2) A person appointed as receiver who fails to give notice to
the Director General within the time specified in subsection (1) or
fails to provide for payment of the service tax as required by that
subsection shall be personally liable for any service tax that is or
becomes payable as aforesaid.
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43
(2A) Any receiver who fails to comply with subsection (1) shall
be guilty of an offence against this Act and shall be liable on
conviction to a fine not exceeding ten thousand ringgit.
(3) Where two or more persons are appointed receivers, the
obligations and liabilities attaching to a receiver under this section
shall attach to all such persons jointly and severally, subject to a
right of contribution between themselves as in cases of contract.
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44
ACT 151
LAWS OF MALAYSIA
Act 151
SERVICE TAX ACT 1975
LIST OF AMENDMENTS
Amending law
Short title
In force from
Act A309
Service Tax (Amendment)
30-05-1975
Act 1975
Act 160
Malaysian Currency (Ringgit)
29-08-1975
Act 1975
P.U. (A) 357/80
Subordinate Courts Act
01-06-1981
(Extension) Order 1980
Act 293
Finance Act 1983
21-10-1983
Act 328
Finance Act 1986
24-10-1986
Act 329
Finance (No. 2) Act 1986
01-01-1987
Act 421
Finance (No. 2) Act 1990
28-10-1989
Act 438
Free Zones Act 1990
05-09-1991
Act 451
Finance Act 1991
01-01-1991
Act 476
Finance Act 1992
01-01-1992
Act A876
Service Tax (Amendment)
04-03-1994
Act 1994
Act A923
Service Tax (Amendment)
21-07-1995
Act 1995
Act A962
Service Tax (Amendment)
13-09-1996
Act 1996
Act 557
Finance Act 1997
25-10-1996
Act A1060
Service Tax (Amendment)
01-01-2000
Act 1999
Service Tax
45
Amending law
Short title
In force from
Act A1165
Service Tax (Amendment)
01-09-2002
Act 2002
Act A1165
Service Tax (Amendment)
01-01-2003
(No. 2) Act 2002
Laws of Malaysia
46
ACT 151
LAWS OF MALAYSIA
Act 151
SERVICE TAX ACT 1975
LIST OF AMENDMENTS
Section
Amending authority
In force from
1
Act
329
01-01-1987
Act
421
28-10-1989
Act
A962
13-09-1996
Act
A1165
01-09-2002
2
Act 329
01-01-1987
Act 421
28-10-1989
Act 451
01-01-1991
Act A876
04-03-1994
Act A962
13-09-1996
Act 557
25-10-1996
Act A1060
01-01-2000
P.U. (A) 117/2000
30-03-2000
Act A1111
06-07-2001
Act A1165
01-09-2002
Act A1182
01-01-2003
Act 438
05-09-1991
2A
3
Act
476
01-01-1992
Act
557
25-10-1996
Act
A1060
01-03-2000
Act
A1182
01-01-2003
4
Act 476
01-01-1992
Act A1060
01-01-2000
5
Act 293
21-10-1983
6
Act A1060
01-01-2000
7
Act 476
01-01-1992
Act A1060
01-01-2000
7A
Act A1060
01-01-2000
8
Act 476
01-01-1992
Act A1060
01-01-2000
Service Tax
47
Section
Amending authority
In force from
8A
Akta A1060
01-01-2000
9
Act A1060
01-01-2000
10
Act A1060
01-01-2000
10A
Act A1060
01-01-2000
Act A1111
06-07-2001
12
Act A923
21-07-1995
Act A1060
01-01-2000
13
Act A1060
01-01-2000
14
Act A923
21-07-1995
Act 557
25-10-1996
Act A1060
01-01-2000
15
Act A1060
01-01-2000
Act A1111
06-07-2001
16
Act 328
24-10-1986
Act A1060
01-01-2000
Act A1182
01-01-2003
17
Act A1060
01-01-2000
Act A1111
06-07-2001
18
Act A1060
01-01-2000
18A
Act A1060
01-01-2000
19
Act A1060
01-01-2000
20
Act A1060
01-01-2000
21
Act A1060
01-01-2000
21A
Act A1060
01-01-2000
21B
Act A1182
01-01-2003
21C
Act A1182
01-01-2003
24
Act A1060
01-01-2000
Act A1111
06-07-2001
26A
Act A1111
06-07-2001
28
Act A1111
06-07-2001
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48
ACT 151
Section
Amending authority
In force from
29
Act A1060
01-01-2000
31-32
Act A1060
01-01-2000
35-36
Act A1111
06-07-2001
37
P.U. (A) 357/1980
01-06-1981
37A
Act A1111
06-07-2001
39
Act A1060
01-01-2000
Act A1060
01-01-2000
40A
41
Act A1060
01-01-2000
Act A1111
06-07-2001
Act A1182
01-01-2003
44
Act A1060
01-01-2000
46
Act A1060
01-01-2000
Act A1111
06-07-2001
47
Act A1060
01-01-2000
47A
Act A1060
01-01-2000
49
Act A876
04-03-1994
50
Act A1182
01-01-2003
51
Act A1060
01-01-2000
52
Act A309
30-05-1975
Act A1060
01-01-2000
DICETAK OLEH
PERCETAKAN NASIONAL MALAYSIA BERHAD,
KUALA LUMPUR
BAGI PIHAK DAN DENGAN PERINTAH KERAJAAN MALAYSIA