Avillion Berhad principal activities are travel, leisure and hospitality providing hotel accommodation services. The company is incorporated on 1 January 2021 during the Covid 19 pandemic. The company’s year-end is ended on 31 December.
Due to Covid 19, government of Malaysia has announced a lot of finance and tax assistance such as People and Economic Strategic Empowerment Programme (PEMERKASA) which were announced on 17 March 2021.
On 10 October 2021, interstate and international travel has been allowed for fully vaccinated individuals. As such, tourism industries can start to breathe again.
For the two months from November 2021 to 31 December 2021 Avilion Berhad has able to generate a turnover of RM2.3 million details are as follows:
RM
1
Hotel Accommodation
700,000
2
Food and beverages
1,000,000
3
Parking Services 600,000
Required:
Advise Avillion Bhd on its obligation under Service Tax Act 2018.
Compute the amount of service tax that need to be accounted for by Avillion Bhd.
Assuming Avilllion Bhd paid the service tax due as computed in (a) above to Royal Malaysian Custom Department on15 March 2022, compute penalty (if any).
