Malaysia legislation
Section 41A
Section 41A
(a)
any percentage of sales tax to be deducted in respect of taxable goods purchased by any registered manufacturer;
(b)
any condition for the deduction; and
(c)
the form and manner of such deduction.
(2)
The deduction of sales tax under subsection (1) shall be made on taxable goods which are raw materials, components, or packing and packaging materials used solely in the manufacturing of taxable goods.
(2A)
A registered manufacturer may make an application to the
Director General for a deduction on the amount of sales tax paid in the form and manner as prescribed under subsection (1).
(2B)
Where the Director General approves the application for deduction of sales tax under subsection (2A), such deduction shall be in accordance with the percentage and conditions as prescribed by the Minister under subsection (1).
(3)
Where any registered manufacturer who has made a deduction under subsection (1) fails to comply with any conditions to which the deduction relates, any sales tax that has been the subject of the deduction shall become due and payable by the registered manufacturer on the date on which any of the conditions failed to be complied with.
58 Laws of Malaysia ACT 806