ABM publishes list of bank products, services
with GST
PETALING JAYA: The Association of Banks in Malaysia
(ABM) has published a list of Goods and Services Tax
(GST) treatment by its commercial bank members on over
300 general bank products and services.
ABM said the list was drawn up in consultation with the
relevant regulatory authorities and member banks.
The list is available on ABM's website www.abm.org.my
with a set of frequently asked questions and answers.
However, the list is not exhaustive and merely sets out
the GST treatment for the identified types of banking
products and services.
ABM advised bank customers to refer to their respective
banks for the revised fee payable after the inclusion of
GST, where applicable, for each product and service. Its
members will also be publishing the detailed price
listing at their banking premises or in their respective
websites. |
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"Interest paid by commercial banks to banking customers
as a result of deposit taking through various types of
accounts (savings, current, fixed deposit or such
similar accounts) will not be subject to GST but fees
and charges imposed by commercial banks for services
enjoyed in relation to these accounts, such as fees and
charges for electronic funds transfer, encashment,
interbank Automated Teller Machine (ATM) withdrawals (in
cases where the ATM is not the ATM of the bank in which
the customer's account resides), other ATM fees if any
and phone banking, will attract GST," ABM said in the
statement.
Interest charged for the provision of loans, advances or
credit by a commercial bank to its customers will not be
subject to GST but fees or charges imposed in the
provision of loans, advances or credit such as, where
applicable, documentation fee, loan application fee,
redemption statement request fee and/or processing fees
will attract GST.
Meanwhile, the transmission of
money or remittances will not be subject to GST but the
commission levied for the issuance of a cashier's order
or a demand draft and tele-transmission charges will
attract GST and while the issuance of a cheque by a
drawer for payment is not subject to GST, the cheque
processing fee will be subject to GST.
Similarly, the cost of the cheque book (excluding stamp
duty) and the service fee for encashment of the cheque
over the counter will attract GST.
Finance charges in respect of the use of a credit card,
debit or charge card are not subject to GST but the
annual subscription fee, if any, charged for a credit
card will attract GST in place of the RM50 service tax
presently payable. GST is also payable with respect to
card fees for debit and charge cards unless such fees
are waived.
"Additionally, fees and charges which are imposed to
compensate for loss, damages or in cases where the
customer fails to meet certain requirements or
conditions are not subject to GST. Examples of such
charges are late payment charges, replacement fee for
lost card/book/PIN, and unauthorized overdraft fees,"
said ABM.
Source:
The Sun Daily
, dated
27/03/2015 |