Hit Counter: 0

Steady Demand For GST-Compliant Software

[ 31-07-2014 ]
Steady Demand For GST-Compliant Software
KUALA LUMPUR, July 20 (Bernama) -- Despite the general lack of awareness over the Goods and Services Tax (GST) among firms especially small and medium enterprises, there has been steady demand for GST-compliant software, said OBM Software Sdn Bhd.

Software Consultant, Jaslyn Wong, said so far the MSC-Status company specialising in business software and financial accounting system received up to 100 companies purchasing its OBM Financial System for GST Solution.

"Since receiving the approval from the Royal Malaysian Customs Department in March this year, we have been receiving quite a number of clients from various industries beginning May," she told Bernama on the sidelines of National GST Conference 2014 organised by Bernama, the Malaysian National News Agency and Tax Advisory and Management Services Sdn Bhd (TAMS).

Wong said the company has developed four packages for the GST financial software: small business, professional, enterprise and enterprise premium, ranging from RM4,000 onwards.

She said the company encouraged their clients to purchase the software using the government's e-voucher subsidy programme.

The government had earlier announced that early businesses which have registered their companies would be given a RM1,000 E-Voucher subsidy to purchase the GST-compliant accounting software from 55 suppliers who have been certified by the Royal Malaysian Customs Department.

"Looking at the business right now, we are hoping to double or triple our sales as compared to last year," she said, adding that the company also received some demand by companies to work out customised software for them.

Wong however expressed dismay that there were still some companies out there which refused to prepare their companies with GST-compliant software as they were hoping the government would postpone the implementation of the new tax.

The SME Association had reportedly asked the government to extend the grace period for full implementation of the GST to three years as more than 80 per cent of the SME entrepreneurs did not know or understand the new tax.

However, the government has said that the GST would be implemented as scheduled on April 1, 2015.

Urging them not to wait, TAMS Executive Director Yong Poh Chye said SMEs should take the government's announcement on GST replacing the current sales and services tax (SST) seriously as it will kick-off on April 1, next year.

Yong said that Parliament has approved the GST act and it has now become law.

"This proved that the government is serious with implementation on April 1, 2015, therefore the local companies whose turnover exceeds RM500,000 must register under the GST regime and prepare themselves with GST compliant software," he said.

Yong said although the government now was in its first phase (from July until September) of the implementation whereby it would provide awareness campaign and training to the businesses, it also urged them to make an effort to make early preparations to avoid problems come April 1, 2015.

The second phase, as mentioned by Yong during his presentation at the recent two-day GST conference, would be from October until December. The companies are supposed to get their businesses a GST-compliant financial system during that three-month period.

"The third phase would be in the first three months of 2015 where we run the GST trial before it really kicks off on April 1," he added.

"Come April 1, 2015, GST will replace SST with a six per cent rate to be imposed on certain goods and services but not on essential goods namely such as processed meat, cooking oil, sugar and essential services like electricity, education, healthcare, toll, financial transactions and life insurance," he added.