With effect from 1 March 2024, the service tax rate is proposed to be increased from 6% to 8% on taxable services.
To add 8% Tax Code in BSM, kindly follow the steps below:
Go to Maintenance, Miscellaneous File, Tax
Click Add and Key in the details as below:
Tax: SV08
Description: Service Tax 8%
Tax%: 8.00
Transaction Type: Sales
Tax Status: Active
Click Save and Exit.
Go to Maintenance, Charges.
Search for Charge Codes that have the SST.
Click Edit.
Select Tax.
Key in Tax Percentage.
Click Save.
More information:
With effect from 1 March 2024, the service tax rate is proposed to be increased from 6% to 8% on taxable services, and the scope of taxable services has been expanded to include three (3) additional taxable services.
Categories subject to an 8% tax rate
Hotel and accommodation industry.
Credit card and charge card processing and fees.
Entertainment and leisure industry (clubs, etc.).
Maintenance or repair services (car repairs, etc.).
Professional services industry (accounting, advertising, construction, etc.).
Other services industry (hair salons, beauty parlors, laundry services, etc.).
Categories maintaining a 6% tax rate
Food and beverage industry
Telecommunication services
Parking services
Logistics services
Newly added taxable categories
Broking and underwriting services
Delivery services
Karaoke