All condos, apartments, flats & gated community will all be affected by the new GST system.
A letter dated 29 October 2014 from the Finance Ministry had been written & replied to the Kuchai Brem Park residents stating that GST would be imposed on MCs collecting more than RM500,000 in maintenance fees.
The same letter also mentioned that GST would only be exempt for low-cost and low-medium cost apartments, where the total yearly maintenance fees are believed less than RM500,000.
Why charge GST on maintenance fees, condo bodies ask
(23/11/2014) More than 15 management corporation (MC) heads, representing more than 30,000 residents living in apartments and condominiums in the Klang Valley, came together today against the implementation of the 6% goods and services tax (GST) on their monthly management and maintenance fees next year.
Saying that it penalises them over landed property owners, the group also said there was a lack of thought that went into the plan to charge GST on Management Committees (MCs) that collected more than RM500,000 annually as the ruling did not specify the density of the strata projects.
Seputeh MP Teresa Kok, who attended the press conference at the Kuchai Brem Park condo community hall in Kuala Lumpur today, called on the relevant agencies to clarify the grey areas.
She said many low-medium-cost apartment MCs would be collecting more than RM500,000 in yearly maintenance because of the higher number of units.
A resident of Brem Park 2, C.W. Tay said this would also mean that those who lived in high-end condo projects with limited units would escape the GST as their maintenance fees collection per year could be less than RM500,000. As such, he called on Putrajaya to explain how it classified strata projects into low-cost, low-medium and high-end categories.
Source & Read More at The Malaysian Insider