August 30, 2018
CIRCULAR ON THE APPLICATION OF THE SERVICE TAX ACT 2018 IN PROCEEDINGS ADMINISTERED BY THE AIAC
AIAC CIRCULAR – APPLICATION OF SERVICE TAX ACT 2018
Effective 1st September 2018, the service tax (“SST”) will be implemented pursuant to the Service Tax Act 2018. According to the Service Tax Regulations 2018, which carry into effect the provisions of the Service Tax Act 2018, the rate of tax is fixed at 6%.
Accordingly, in all services rendered by the AIAC, including, but not limited to, case management and/or ancillary services in adjudication, arbitration, mediation and domain name dispute proceedings:
- all adjudicators, arbitrators, mediators and domain name dispute panellists, who are SST-registered, are required to issue invoices rendered for their services, reflecting the Service Tax rate of 6%;
- all adjudicators, arbitrators, mediators and domain name panellists, who are not SST-registered, are required to issue their invoices without any Service Tax rate; and
- the AIAC will be issuing invoices for (a) all its services related to case management, including, but not limited to, the registration of cases, the appointment of adjudicators/arbitrators, the administration of cases, etc. (b) and services not related to case management, such as room rental fees, etc. reflecting the Service Tax rate of 6%.
Furthermore, in all pending matters administered by the AIAC and commenced prior to 1st September 2018, the AIAC may be requesting additional payment to account for SST (this applies in those matters, in which 0% Goods and Services Tax was applicable; cf. the AIAC’s Circular of 1st June 2018).
This Circular will take effect on 1st September 2018.
Dated this 30th August 2018.
DATUK PROFESSOR SUNDRA RAJOO
Director of the AIAC