Taxable persons providing taxable services as indicated in the Second Schedule of the Service Tax Regulations 1975 are required to apply for service tax license once the Annual Sales Turnover reaches the threshold.
The application shall be made in Form JKED No.1 and the license is in the Form JKED No.3.
The license must be displayed in the company’s premise where the business is being conducted, such as cashier’s counter, office lobby or meeting room.
Service Tax Licence Application Procedures:
1. Application must be made by:
- The Director or secretary for a corporate body.
- The owner or secretary for a non corporate body.
- Any person responsible in receiving any notice or other documents.
- All the shareholders of the shareholders company.
2. JKED No. 1 must be filled and submitted in two (2) copies to the Senior Officer of Customs at the one-stop Licensing Centre, Royal Customs Department which is nearest to the company’s business management office. The following documents are to be attached :
- Official letter pertaining to the application.
- Authorised letter / appointment letter for a person responsible to deal with customs.
- Form 9 – Registration of business
- Memorandum & Article of Association (MAA)
- Form 24 – Return of Allotments of Share
- Form 44 – Registration of companies
- Form 49 – Particulars of Directors and Secretaries.
- Photostatted copy of Identity Card/Passport.
- Photos (2 copies) of the Applicant / partners.
- Location plan of the premise
Additional Supporting Documents (if any, but not required indeed):
- Certificate of Fitness (CF)
- Certificate issued by professional bodies.
- Approval letter from customs for forwarding agent.
- Bank Guarantee
- Approval letter from Bank Negara for charge cards/credits cards
- Approval letter from District Office Licensing Board – Section 35 Excise Act 1976.
- Photocopy license from local authority such as Health Centre Licence
- Authorised letter from the company if the application made by an agent.
- Appendix C – information about annual sales turnover (Profit & Loss Account).
Some of the professional bodies do not have to register with the Company’s Act 1965 or Register of Business 1956 if they want to start any businesses. The businesses can be started if they have a certificate issued by the Registered Professional Bodies.
3. JKED No. 1 must be signed by the owner/director/secretary/any person responsible in receiving any notice or other documents on behalf of that business body/all the partners of the business.
4. Applicant designation must be shown clearly whether he is a Director, Chairman or others with authority.
5. When all the particulars needed in the JKED No. 1 form has been completed, a service tax licence will be issued to the applicant.
Any company or business (enterprise or partnership), who are providing taxable services but the annual sales turnover do not reach the threshold as required, can apply for a service tax license on a voluntary basis and impose service tax thereon.
This can avoid any unnecessary service tax fine or penalty being charged or imposed by the Customs Department due to miscalculation of the threshold.
Surrender of license
Any service tax license holder can surrender the license to the Customs Office in any of the following circumstances:
- Cessation of business operations
- Annual sales turnover falls below the threshold
- Business acquired by another registered company
- Order by the Director General