Malaysia legislation
Section 58
Section 58
(a)
the person has not received any payment or part of the payment in respect of the taxable supply from the debtor six months from the date of supply or the debtor has become insolvent before the period of six months has elapsed; and
Act 762 BI Teks 1.indd 71 6/19/14 5:56:13 PM
Act 762
(b)
sufficient efforts have been made by him to recover the debt.
(2)
Where the person referred to in subsection (1)—
(a)
has not received any payment in respect of the taxable supply, the person may make a claim for the whole of the tax paid; or
(b)
has received part of the payment in respect of the taxable supply, the person may make a claim for an amount calculated in accordance with the following formula:
A1 x C
B where
A1
is the payment not received in respect of the taxable supply;
B is the consideration for the taxable supply; and
C is the tax due and payable on the taxable supply.
(3)
Where a relief for bad debt has been made by the Director
General to a person and any payment in respect of the taxable supply for which the tax is due and payable is subsequently received by the person, the person shall repay to the Director
General an amount calculated in accordance with the following formula:
A2 x C
B where
A2
is the payment received in respect of the taxable supply;
B is the consideration for the taxable supply; and
C is the tax due and payable on the taxable supply.
Act 762 BI Teks 1.indd 72 6/19/14 5:56:13 PM
Goods and Services Tax 73
Relief for second-hand goods