Service Tax Act 2018: Amendment of Section 91 – Power To Make Regulations

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“Section 91 – Power To Make Regulations” is read as follows:-

91(1) [Power to make regulations]

The Minister may make regulations as may be necessary or expedient for the purposes of carrying into effect the provisions of this Act.

91(2) [Purpose of regulations]

Without prejudice to the generality of subsection (1), Minister may prescribe—

  1. all matters relating to registration of registered person;
  2. all matters relating to taxable period;
  3. all matters relating to determination of value of taxable service;
  4. all matters relating to furnishing returns, declarations and payment of service tax;
  5. all matters relating to refund and remission of service tax;
  6. all matters relating to public ruling and customs ruling;
  7. all matters relating to electronic service;
  8. all matters relating to invoices, credit notes and debit notes;
  9. all matters relating to the offices for the administration of service tax;
  10. all fees required by this Act to be prescribed;
  11. all forms to be prescribed for the purposes of this Act;
  12. any other matters required by this Act to be prescribed; or
  13. all matters relating to digital services.

91(2) [Contravention of regulations]

Any regulations made under this section may prescribe an act or omission in contravention of the regulations to be an offence and may prescribe penalties of a fine not exceeding thirty thousand ringgit or to imprisonment for a term not exceeding two years or both for such offence.

Finance (No. 2) Bill 2023

The Finance (No. 2) Bill 2023 introduces a significant amendment to Section 91 of the Service Tax Act 2018, focusing on the power to make regulations.

Currently, Section 91(2) outlines various matters that the Minister may prescribe through regulations, including forms for various purposes.

The proposed amendment seeks to streamline and reorganise this section by deleting paragraph (2)(k), which specifically refers to the prescription of forms for the purposes of the Act.

Additionally, the amendment renumbers the subsequent subsection (2) after the existing paragraph (2)(m) as subsection (3).

This amendment implies refining the regulatory scope, potentially allowing for a more targeted approach in prescribing forms and enhancing administrative efficiency.

The impact of this change lies in optimising the regulatory framework, aligning it with the evolving needs of the service tax landscape and promoting clarity in the prescribed matters.

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