"calendar month"  means a month reckoned according to the Gregorian calendar;

  "computer"  has the meaning assigned thereto in section 3 of the Evidence Act 1950;

[Ins. Act 557]

  "Customs"  means the Royal Customs and Excise Department;

  "Director General"  means the

2A PART I PRELIMINARY-2A. For the purposes of this Act, a free zone shall be deemed to be a place outside Malaysia.

In this section, the expression "free zone" has the same meaning assigned to it under section 2 of the Free Zones Act, 1990.

3 PART II CHARGE TO TAX-3. Charge to tax

Service tax shall be charged and levied in accordance with this Act on any taxable service provided by any taxable person.

4 PART II CHARGE TO TAX-4. Determination of charge and value.

For the purposes of this Act, the charge, premium or value on which service tax is payable shall be ascertained as follows-

(a) in the case of taxable service for the-

(i) sale of goods by a taxable person to-

(A) a person independent of the taxable person, the actual price for which the goods are sold; or

(B) a person not independent of the taxable person, the price at which the goods would have been sold in the ordinary course of business to a person independent of the taxable person;

(ii) provision of goods, where no charge is levied for the provision of the goods, the price at which the goods would have been sold in the ordinary course of business to a person independent of the taxable person;

( b ) in the case of taxable service, other than the taxable service specified in paragraph ( a )-

(

5 PART II CHARGE TO TAX-5. Rate of tax.

(1) The Minister may by order published in the Gazette fix the rate of service tax to be charged and levied under this Act.

(2) The Minister may from time to time by order published in the Gazette vary or amend the rate of tax fixed under subsection (1).

(3) Any order made under subsections (1) and (2) shall at the next meeting of the House of Representatives be laid on the table of that House and shall, at the expiration of one hundred and twenty days of being so laid or of such extended period as the House of Representatives may by resolution direct, cease to have effect if and insofar as it is not confirmed by resolution passed by the House of Representatives within the said one hundred and twenty days or, if such period has been extended, within such extended period.

(4) Where an order ceases to have effect in whole or in part as provided in subsection (3), then any service tax levied in pursuance of such o

6 PART II CHARGE TO TAX-6. Powers of Minister to exempt and refund.

The Minister may, in any particular case, subject to such conditions as he may deem fit to impose-

(a) exempt any person or class of persons from the payment of the whole or any part of the service tax which otherwise would have been payable by that person or that class of persons;

(b) exempt any service or class of service from the whole or any part of the service tax which otherwise would have been payable;

[Am. Act A1060]

(c) direct the refund to any person or class of persons of the whole or any part of the service tax paid by that person or that class of persons; or

(d) direct the refund to any person or class of persons of the whole or any part of the penalty paid by that person or that class of persons.

6A PART IIA CUSTOMS RULING-6A. Application for customs ruling.

(1) Any person may apply, in the prescribed form together with the prescribed fee, to the Director General for a customs ruling in respect of any one or more of the following matters:

(a) the determination of a taxable service;

(b) the principles to be adopted for the purposes of determination of value of a service; or

(c) any other matters to be prescribed by the Director General.

(2) An application under subsection (1) may be made at any time before a service is provided or at any later time, if the Director General may in his discretion permit.

(3) An applicant may withdraw his application at any time before a customs ruling is made and any payment made relating to the application for the customs ruling shall be forfeited by the Director General.

[Ins. by Act A1281]

6B PART IIA CUSTOMS RULING-6B. Making of customs ruling.

(1) Subject to subsection (3), the Director General shall make a customs ruling in respect of any matter specified in the application made under section 6A and such ruling shall bind the applicant.

(2) Any such customs ruling may be subject to such conditions as the Director General may deem fit to impose.

(3) The Director General may decline to make a customs ruling if, in his opinion-

(a) the information given by the applicant is insufficient to do so;

(b) the application is for a hypothetical situation; or

(c) an appeal under this Act is pending involving the subject matter referred to in the application.

[Ins. by Act A1281]

6C PART IIA CUSTOMS RULING-6C. Amendment, modification or revocation of customs ruling.

(1) A customs ruling may be amended, modified or revoked by the Director General if-

(a) it contains an error which needs to be corrected;

(b) the customs ruling was based on an error of fact or law;

(c) there is a change in law relating to service tax; or

(d) there is a change in the material fact or circumstances on which the ruling was based.

(2) The Director General shall, immediately after making the amendment, modification or revocation, give a notice in writing to the applicant of the amendment, modification or revocation and, subject to subsection (3), such amended, modified or revoked customs ruling shall take effect from the date stated in the notice.

(3) Notwithstanding subsection (2), where a customs ruling has the effect of causing or increasing any tax liability in respect of any service provided within three months of the date t

6D PART IIA CUSTOMS RULING-6D. Director General to declare rulings to be null, etc.

The Director General shall by a notice declare a customs. ruling issued under section 6B to be null, void and of no effect if the ruling has been obtained by the applicant by way of fraud, misrepresentation or falsification of facts.

[Ins. by Act A1281]

6E PART IIA CUSTOMS RULING-6E. Receiving of two customs rulings.

Where an applicant receives two or more different customs rulings on the same subject matter, such rulings shall be treated as being null and void and such applicant shall immediately notify the Director General who shall, within thirty days from the date of the notification, issue a new customs ruling.

[Ins. by Act A1281]

7 PART III TAXABLE PERSONS - LICENSING-7. Person chargeable to tax.

Subject to this Act, service tax shall be charged on and paid by any taxable person who carries on business of providing taxable service referred to in section 3.

[Am. Act A1060]

7A PART III TAXABLE PERSONS - LICENSING-7A. Direction to treat persons as a single taxable person.

(1) Notwithstanding sections 7, 8 and 8A, where the Director General is satisfied that any separation of business activities is artificial, he may make a direction under this section directing that the persons named in that direction shall be treated as a single taxable person carrying on the activities of the business described in that direction and that single taxable person shall not continue to carry on the activities of such business unless he is licensed within twenty one days from the date the direction is served on the last of such persons or from such later date as may be specified in that direction.

(2) For the purposes of subsection (1), in determining whether any separation of business activities is artificial, regard shall he had to the extent to which the different persons carrying on those business activities are closely bound to one another by financial, economic and organizational links.

(3) The Director General may mak

7B PART III TAXABLE PERSONS - LICENSING-7B. Certificate under section 6B to be admissible.

Notwithstanding anything contained in any other written law or rule of evidence to the contrary, where in any proceedings a document purporting to be a certificate under the hand of the Director General in respect of a decision made by him under section 6B is produced, such document shall be admissible in evidence and shall be accepted as sufficient evidence of the facts therein stated and the Director General shall not be required to give evidence in respect of such decision unless the court otherwise orders.

[Ins. by Act A1281]

8 PART III TAXABLE PERSONS - LICENSING-8. Application for licence, issue, etc.

(1) Every person who carries on business of providing taxable service referred to in section 3 (a) or selling or providing taxable goods referred to in section 3 (b) shall apply to the senior officer of customs in the prescribed form for a licence, and subject to section 9, no person shall carry on such a business unless he is in possession of a licence issued under subsection (2).

(2) Subject to subsection (3), the Director General shall issue a licence in the prescribed form.

(3) Before any licence is issued under this section, or where a licence has been issued under this section, the Director General may require the person applying for the licence, or the holder of the licence, as the case may be, to give such security for the due compliance by that person with the provisions of this Act and generally for the protection of the revenue as the Director General thinks fit; and where the Director General is at any time d

8A PART III TAXABLE PERSONS - LICENSING-8A. Voluntary licensing.

(1) Where any person who is not required to be licensed under section 8 satisfies the Director General that he-

( a ) provides taxable service; or

( b ) is intending to carry on a business of providing taxable service,

that person may apply to the Director General in the prescribed form to be licensed under this Act and the Director General may issue a licence to that person.

(2) Where any person is licensed under subsection (1), he shall be treated as a taxable person, and the provisions of this Act shall apply to him.

[Ins. Act A1060]

9 PART III TAXABLE PERSONS - LICENSING-9. Surrender and revocation of licences.

(1) If any taxable person ceases to carry on business he shall forthwith surrender his licence to the Director General.

(1A) Subject to this Act, where any person who is licensed ceases to be a taxable person, he may apply in writing to the Director General to surrender his licence.

[Ins. Act A1060]

(1B) Upon receipt of a person's application under subsection (I A), the Director General may-

( a ) if he is satisfied that the person has ceased to be a taxable person, accept the surrender of his licence and that person shall cease to be a taxable person; or

( b ) if he is not satisfied that the person has ceased to be a taxable person, reject his application to surrender his licence and that person shall continue to be a taxable person.

[Ins. Act A1060]

(2) Without prejudice to subsection 7A(6), if any taxable per

10 PART IV INVOICES, RECORDS, RETURNS AND ASSESSMENT-10. Invoices and receipts.

(1) Every taxable person who provides any taxable service shall, unless otherwise prescribed by regulations, issue an invoice and a receipt in the national language or in the English language to the customer in respect of the transaction and shall state in the invoice and receipt the amount of service tax payable separately from the charges for the taxable service provided.

[Subs. Act A1060]

(2) The amount of service tax payable shall be recoverable by the taxable person from the customer.

[Am. Act A1060]

(3) No invoice showing an amount which purports to be service tax shall be issued -

(a) on the provisions of any service which is not taxable service or

(b) (repealed) - [Deleted by Act A1060]

(c) by a person who is not a taxable person.

10A PART IV INVOICES, RECORDS, RETURNS AND ASSESSMENT-10A. Production of invoices or receipts by computer.

(1) Subject to subsection (2), for the purposes of any provision under this Act in relation to an invoice or a receipt, a taxable person shall be treated as having issued an invoice or a receipt to a customer notwithstanding that there is no delivery of any equivalent document in paper form to the customer if the requisite information is recorded in a computer and-

[Am. by Act A1111]

( a ) is transmitted to the customer by electronic means; or

( b ) is produced on any material other than paper and is delivered to the customer.

(2) No provision in relation to invoices or receipts produced by computer shall be treated as having been complied with unless the taxable person and the customer-

[Am. by Act A1111]

( a ) have obtained the Director General's approval in writing-

(i) to tra

11 PART IV INVOICES, RECORDS, RETURNS AND ASSESSMENT-11. Duty to keep records.

(1) Every taxable person shall keep in such books of account or other records as the Director General may direct, full and true records written up to date of all transactions which affect or may affect his liability to service tax and shall keep those books of account or other records in the National Language or English.

(2) The books of account and other records which are required to be kept in accordance with this section and duplicate copies of invoices issued under section 10 shall be preserved for a period of six years from the latest date to which the books of account, records and invoices relate.

12 PART IV INVOICES, RECORDS, RETURNS AND ASSESSMENT-12. Furnishing of returns.

(1) Every taxable person shall within twenty-eight days or such extended period as may be allowed by the Director General after the end of each taxable period deliver to the proper officer a return in the prescribed form setting forth the aggregate amount of the proceeds received during that taxable period in respect of charges levied or collected for providing taxable service the amount of service tax payable and such other particulars as may be required by the Director General; and the return shall be verified by declaration in the prescribed form.

[Am. Act A1060]

(1A) Notwithstanding subsection (1), where any taxable person ceases to carry on a business of providing taxable service or to be a taxable person or where the licence of any taxable person is suspended or revoked by the Director General such taxable person shall immediately deliver to the proper officer-

( a ) a return in t

13 PART IV INVOICES, RECORDS, RETURNS AND ASSESSMENT-13. Assessment of tax.

(1) Any return furnished under section 12 may be accepted by the proper officer as sufficient proof of the matters therein contained, and service tax may be assessed by the proper officer accordingly.

(2) If the proper officer has reason to believe that the amount of service tax shown in a return made by any taxable person under section 12 as payable on any taxable service is less than the amount payable under this Act, he may assess the tax at such greater amount as he deems fit and a notice in writing of the amount shall be served on that person.

[Am. Act A1060]

(3) If the proper officer has reason to believe that service tax is payable in respect of any taxable service under this Act, by any person who has not made a return in respect thereof, he may assess the service tax at such amount as he deems fit and a notice in writing of the amount shall be served on that person.

[Am.

14 PART V COLLECTION, RECOVERY, REFUND AND REMISSION-14. When tax becomes due and payable.

1) The service tax chargeable under this Act shall be due at the time when payment is received for the taxable service provided to the customer by the taxable person.

[Subs. Act A1060]

(2) Where the whole or any part of the payment for any taxable service provided by the taxable person is not received from the customer within a period of twelve calendar months from the date of the invoice for the taxable service provided, service tax shall be due on the day following that period of twelve calendar months.

[Subs. Act A1060]

(3) Any service tax which falls due under subsection (1) or (2) during any taxable period shall be payable to the Director General within twenty-eight days from the expiration of that taxable period.

[Am. Act A1060]

(4) Notwithstanding subsection (1), (2) or (3), service tax required to be accounted in any return made

15 PART V COLLECTION, RECOVERY, REFUND AND REMISSION-15. Recovery of tax.

(1) Without prejudice to any other remedy, any service tax due and payable and any penalty or surcharge payable under this Act may be recovered as a civil debt due to the Government.

[Am. Act 1060]

(2) In any suit to recover the service tax, and, penalty or surcharge if any, under subsection (1), the production of a certificate signed by the Director General giving the name and address of the taxable person and the amount of the service tax, and, penalty or surcharge if any, due by him shall be sufficient evidence of the amount so due by him and sufficient authority for the court to give judgment for the said amount.

[Am. PU(A) 283/2002 and Act 1060]

(3) Any penalty or surcharge imposed under this Act shall. for the purposes of this Act and the Limitation Act 1953 [Act 254] , the Limitation Ordinance of Sabah [Sabah Cap. 72.] or the Limitation Ordinance of Sar

16 PART V COLLECTION, RECOVERY, REFUND AND REMISSION-16. Penalty for late payment of tax.

Where any amount of service tax deemed payable remains unpaid after the last day on which it is payable under section 14 or repayable under section 21C, as the case may be-

[Am. Act 1182]

(a) a penalty equal to ten per cent of such, unpaid amount shall thereupon be payable;

(b) if the service tax due and payable remains unpaid for more than thirty days after the last day on which it was so payable or repayable the rate of penalty under paragraph (a) on such unpaid service tax shall be increased by ten per cent for the second period of thirty days, after such last day and for every succeeding period of thirty days or part thereof during which such amount remains unpaid to a maximum penalty of fifty percent.

[Am. Act 1182]

17 PART V COLLECTION, RECOVERY, REFUND AND REMISSION-17. Joint and several liability of Directors, etc.

Where service tax, penalty or surcharge is due and payable by -

[Am. Act A1060]

(a) a company;

(b) a firm; or

(c) a society, an association or other body of persons,

[Am. Act A1111]

then notwithstanding anything to the contrary in this Act or in any other Act, the directors of such company or the partners of such firm or members of such society, association or other body of persons as the case may be, shall, together with such company, firm, society, association or other body of persons be jointly and severally liable for the service tax, penalty or surcharge;

[Am. Act A1111]

Provided that in relation to a company that is being wound up, the directors of such company shall only be so liable where the assets of the company are insufficient to meet the amount due, after

18 PART V COLLECTION, RECOVERY, REFUND AND REMISSION-18. Persons about to leave Malaysia.

If the Director General has reason to believe that a taxable person is about to leave Malaysia before any service tax due by him becomes payable in accordance with the provisions of this Act, the service tax shall, if the Director General deems fit, be payable on such earlier date as he may determine and, if the whereabouts of the taxable person are known by the Director General, the taxable person shall be notified accordingly.

[Am. Act A1060]

18A PART V COLLECTION, RECOVERY, REFUND AND REMISSION-18A. Recovery of service tax, etc , from persons leaving Malaysia

(1) Where the Director General has reason to believe that any person is about or is likely to leave Malaysia without paying-

( a ) any service tax payable by him;

( b ) any penalty payable by him under section 16;

( c ) any surcharge payable by him under subsection 20(3); or

( d ) any other moneys recoverable from him under this Act,

he may issue to any Director of Immigration a certificate containing particulars of the service tax, penalty, surcharge or other moneys so payable with a request that such person be prevented from leaving Malaysia unless and until he pays the service tax, penalty, surcharge or other moneys so payable, or furnishes security to the satisfaction of the Director General for their payment.

(2) Subject to any order issued or made under any written law for the time being in force relating to banishment or immigration, any Direct

19 PART V COLLECTION, RECOVERY, REFUND AND REMISSION-19. Power to collect service tax, etc., from person owing money to taxable person.

(1) Where any sum by way of service tax or penalty or surcharge is due and payable by a taxable person, the Director General may, by notice in writing (a copy of which shall be forwarded to the taxable person at his last known address) require-

(a) any person by whom any money is due or accruing or may become due to the taxable person;

(b) a person who holds or may subsequently hold money for or on account of the taxable person; or

(c) any person having authority from some other person to pay money to the taxable person,

to pay to him forthwith, or within such period as the Director General may allow, such money (not being salary or wages due to the taxable person) or so much thereof as is sufficient to pay the sum due and payable by the taxable person as aforesaid.

[Am. Act A1060]

(2) All payments made pursuant to a notice under

20 PART V COLLECTION, RECOVERY, REFUND AND REMISSION-20. Payment of service tax, etc., short paid or erroneously refunded and payment by instalments.

(1) Where-

( a ) the whole or any part of any service tax, penalty or other moneys payable under this Act has not been paid; or

( b ) the whole or any part of any service tax, penalty by or other moneys after having been paid has been erroneously refunded,

then, provided a demand is made within three years from the date on which the service tax, penalty or other moneys were payable, or the deficient service tax, penalty or other moneys were paid, or the refund was made, as the case may be, the person-

( aa ) liable to pay-

(i) the service tax, penalty or other moneys; or

(ii) the deficient service tax, penalty or other moneys; or

( bb ) to whom the refund was erroneously made,

shall pay the service tax, penalty or other moneys, or the deficient service tax, penalty or other moneys ,

21 PART V COLLECTION, RECOVERY, REFUND AND REMISSION-21. Return of service tax or penalty overpaid or erroneously paid.

It shall be lawful for the Director General, if it is proved to his satisfaction that any service tax or penalty has been overpaid or erroneously paid under this Act, to order the refund of the service tax or penalty that was overpaid or erroneously paid subject to such limit as may be prescribed by regulations:

Provided that-

( a ) no such refund shall be allowed unless a claim in respect of it is made in the prescribed form within one year after the overpayment or erroneous payment was made; and

( b ) the Director General may reduce or altogether disallow any refund due under this section to the extent that the refund would unjustly enrich the claimant.

[Susb. Act A1060]

21A PART V COLLECTION, RECOVERY, REFUND AND REMISSION-21A. Deduction from return of refunded service tax.

(1) The Director General may approve, subject to such conditions as he may deem fit to impose, an application by any taxable person to deduct from time to time from his tax return referred to in subsection

12(1) the amount of service tax paid but subsequently refunded to his customer by reason of -

( a ) cancellation of taxable service;

( b ) termination of taxable service; or

( c ) such other reasons as may be approved by the Director General.

(2) The taxable person shall make the deduction referred to in subsection (1) within one year after the payment was made, or such extended period as may be approved by the Director General.

[Am. Act A1060]

21B PART V COLLECTION, RECOVERY, REFUND AND REMISSION-21B. Refund for doubtful debt or bad debt.

[Am. Act 661]

(1) Any person who is or has ceased to be a taxable person may make a claim to the Director General for a refund of the whole or any part of the service tax paid by him in respect of taxable service if-

(a) the service tax has been paid by such person on or after 1 January 2003;

(b) the whole or any part of the service tax payable to such person has been provided in his accounts as doubtful debt or has been written off in his accounts as bad debts; and

[Am. Act 661]

(c) the Director General is satisfied that all reasonable efforts have been made by such person to recover the service tax.

(2) Where the person mentioned in subsection (1)-

(a) has not received any payment in respect of the provision of taxable service, such person may make a claim for the whole of the servic

21C PART V COLLECTION, RECOVERY, REFUND AND REMISSION-21C. Repayment of refund.

Where a refund of service tax has been made under section 21B by the Director General to a person and any payment in respect of the provision of taxable service for which the service tax is payable is subsequently received by the person, the person shall repay to the Director General an amount calculated in accordance with the following formula:

A/B x C

where A is the payment received in respect of the provision of such taxable service;

B is the sale value of such taxable service plus service tax payable on such service; and

C is the service tax payable on such service.

[Ins. Act 1182]

22 PART V COLLECTION, RECOVERY, REFUND AND REMISSION-22. Remission.

The Minister may, if he thinks it just and equitable to do so, and subject to such conditions as he may deem fit to impose, remit the whole or any part of any service tax or other moneys due and payable under this Act, or the whole or any part of any penalty payable under the provisions of section 16.

23 PART VI INSPECTION, SEARCH, SEIZURE AND ARREST-23. Persons bound to give information.

(1) Every person having information about any matter into which it is the duty of the proper officer to inquire shall upon being required by him to do so, give such information.

(2) Every person required by the proper officer to produce a document or other thing which is within the power of such person to produce, and which is a document or thing required under this Act or a document or thing used in any transaction relating to service tax or a document or thing into which it is the duty of the proper officer to inquire under this Act, shall produce such document or thing.

24 PART VI INSPECTION, SEARCH, SEIZURE AND ARREST-24. Access to buildings, places, books, etc.

(1) Any proper officer shall for the purposes of this Act at all times have full and free access to all buildings, places, books, data, documents or other records for the purpose of ascertaining the amount of service tax to be payable by any person under this Act, and may, without fee or reward, inspect, copy or make extracts from any such books, data, documents or other records.

[Am. PU(A)283/2002]

(2) Any proper officer may take possession of any such books, data, documents or other records where in his opinion-

(a) the inspection, copying or extraction thereof cannot reasonably be performed without taking possession thereof;

(b) the books, data, documents or other records may be interfered with or destroyed unless possession thereof is taken; or

(c) the books, data, documents or other records may be required as evidence in proceedings for an offenc

25 PART VI INSPECTION, SEARCH, SEIZURE AND ARREST-25. Magistrate may issue search warrant.

(1) Whenever it appears to any Magistrate, upon written information upon oath and after any inquiry which he may think necessary, that there is reasonable cause to believe that in any dwelling house, shop or other building or place or on board any vessel or aircraft, there are concealed or deposited any books, documents or things which may afford evidence of an offence against this Act, the Magistrate may issue a warrant authorizing any proper officer named therein, at any time and with or without assistance to enter the dwelling house, shop or other building, place, vessel or aircraft and there to search for and seize the books, documents or things.

(2) The officer authorized in accordance with subsection (1) may if it is necessary so to do-

(a) break open any outer or inner door of the dwelling house, shop or other building, place or vessel or aircraft and enter every part thereof, if necessary forcibly;

26 PART VI INSPECTION, SEARCH, SEIZURE AND ARREST-26. When search may be made without warrant.

Whenever it appears to the senior officer of customs that there is reasonable cause to believe that in any dwelling house, shop or other building, or place, or on board any vessel or aircraft, there are concealed or deposited any books, documents or things which may afford evidence of an offence against this Act, and if he has reasonable grounds for believing that by reason of the delay in obtaining a search warrant the books, documents or things are likely to be removed, he may exercise in, upon and in respect of the dwelling house, shop or other building, place, vessel or aircraft all the powers mentioned in section 25 in the same manner as if he were empowered so to do by a warrant issued under that section.

26A PART VI INSPECTION, SEARCH, SEIZURE AND ARREST-26A. Access to recorded information or computerized data.

(1) Any proper officer exercising his powers under sections 24, 25 and 26 shall be given access to any recorded information or computerized data, whether stored in a computer or otherwise.

(2) In addition, a proper officer exercising his powers under sections 24, 25 and 26-

(a) may inspect and check the operation of any computer and any associated apparatus or material which he has reasonable cause to suspect is or has been used in connection with that information or data; and

(b) may require-

(i) the person by whom or on whose behalf the proper officer has reasonable cause to suspect the computer is or has been so used; or

(ii) the person having charge of, or is otherwise concerned with, the operation of the computer, apparatus or material,

to provide him with such reasonable assistance as he may require for the purposes of this sect

27 PART VI INSPECTION, SEARCH, SEIZURE AND ARREST-27. Seizure of books, documents, etc .

All books, documents or things in respect of which the senior officer of customs or the proper officer has reasonable cause to suspect that there has been committed any offence against this Act or a breach of any condition subject to which any licence has been issued under this Act and any books, documents or things which may reasonably be believed to have a bearing on the case, may be seized by that officer.

28 PART VI INSPECTION, SEARCH, SEIZURE AND ARREST-28. Power of arrest.

(1) Any senior officer of customs and proper officer may arrest without warrant -

(a) any person found committing or attempting to commit or employing or aiding any person to commit or abetting the commission of, an offence against this Act;

(b) any person whom he may reasonably suspect to have in his possession any books, documents or things liable to seizure under this Act;

(c) any person whom he may reasonably suspect to have committed an offence against this Act,

and that officer may search or cause to be searched any person so arrested:

Provided that-

(a) any person arrested by a proper officer who requests that his person be searched in the presence of a senior officer of customs shall not be searched except in the presence of and under the supervision of that officer, but that person may be detained until the arrival of tha

29 PART VII OFFENCES-29. Failure to comply with notice, etc .

Without prejudice to any other liability incurred under this Act, any person who-

(a) fails or refuses to comply with the requirements of section 7, 7A, 8, 10, 10A, 11, 12, 14 or 19;

[Am. Act A1060]

(b) carries on business at any place or premises not specified in the licence issued under section 8 or 8A;

[Am. Act A1060]

(c) fails or refuses to produce any book, document or thing for the examination or retention by the proper officer in accordance with the requirements of this Act;

( ca ) contravenes subsection 47A(2);

[Ins. Act A1060]

(d) fails or refuses to give correct information or refuses to give any information which he is required to give relating to service tax;

(e) pays a lesser amount of service tax than is required by this Act;

(f) in any way obstructs any proper officer in

30 PART VII OFFENCES-30. Penalty for incorrect return.

Any person who makes an incorrect return under this Act or the regulations by omitting therefrom any information or gives any incorrect information in relation to any matter affecting his own liability to service tax or the liability of any other person or a firm or an association of persons shall be guilty of an offence against this Act and shall be liable on conviction to a fine not exceeding five thousand ringgit or to imprisonment for a term not exceeding two years or to both.

31 PART VII OFFENCES-31. Penalty for charging or collecting service tax by non-taxable person.

(1) No person shall charge or collect from any person any sum of money for the purpose of paying service tax levied under this Act in respect of any service provided by him or on his behalf unless he is liable under this Act to pay such service tax.

[Am. Act A1060]

(2) Any person who contravenes the provisions of this section shall be guilty of an offence against this Act and shall be liable on conviction to a fine not exceeding five thousand ringgit or to an imprisonment of two years or to both.

32 PART VII OFFENCES-32. Penalty for evasion of service tax.

(1) Any person who wilfully with intent to evade or to assist any other person to evade service tax -

(a) omits from a return made under this Act or the regulations any information in relation to any matter affecting the amount of his or other person's chargeability to service tax;

(b) makes a false statement or entry in any return, claim or application made under this Act or the regulations;

[Am. Act A1060]

(c) gives any false answer whether verbally or in writing to any question or request for information asked or made in pursuance of this Act or the regulations;

(d) prepares or maintains or authorizes the preparation or maintenance of any false book of accounts, false invoices or other false records, or falsifies or authorizes the falsification of any book of accounts, invoices or records; or

(e) makes use or authorizes the use of any fraud, art or contrivance,

<

33 PART VII OFFENCES-33. Attempts and abetments.

Whoever attempts to commit an offence against this Act, or abets the commission of such offence, shall be punished with the punishment provided for such offence.

34 PART VII OFFENCES-34. General penalty.

Any omission or neglect to comply with and any act done or attempted to be done contrary to the provisions of this Act or the regulations, and in respect of which no penalty is expressly provided shall be an offence against this Act and the offender shall be liable on conviction to a fine not exceeding five thousand ringgit or to imprisonment for a term not exceeding two years or to both.

35 PART VII OFFENCES-35. Offences by corporate bodies.

(1) Where an offence under this Act or the regulations has been committed by a company, a firm, a society, an association or other body of persons, any person who at the time of the commission of the offence was a director, manager, secretary or other similar officer or a partner of the company, firm, society, association or other body of persons or was purporting to act in such capacity shall be deemed to be guilty of that offence unless he proves that the offence was committed without his consent or connivance and that he exercised all such diligence to prevent the commission of the offence as he ought to have exercised, having regard to the nature of his functions in that capacity and to all the circumstances.

[Am. Act A1111]

(2) Where any person would be liable under this Act to any punishment or penalty for any act, omission, neglect or default he shall be liable to the same punishment or penalty for every su

37 PART VIII PROVISIONS AS TO TRIALS AND PROCEEDINGS-37. Sessions Court and Magistrate of the First Class to have jurisdiction.

Notwithstanding the provisions of any written law to the contrary, a Sessions Court in West Malaysia or a Court of a Magistrate of the First Class in Sabah and Sarawak shall have jurisdiction to try any offence under this Act and to impose punishment under this Act for any such offence.

37A PART VIII PROVISIONS AS TO TRIALS AND PROCEEDINGS-37A. Obligation of secrecy.

(1) Except as provided under section 38, the name and address of an informer and the substance of the information received from an informer shall be kept secret and shall not be disclosed by any proper officer or any person who in the ordinary course of his duties comes into possession of or has control of or access to such information to any person except the designated proper officer authorized by the Director General.

(2) Any person who contravenes subsection (1) shall be guilty of an offence against this Act and shall be liable on conviction to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding five years or to both.

[Ins. Act A1111]

38 PART VIII PROVISIONS AS TO TRIALS AND PROCEEDINGS-38. Protection of informers from discovery.

(1) Except as hereinafter provided, no witness in any civil or criminal proceedings under this Act shall be obliged or permitted to disclose the name or address of an informer, or the substance of the information received from him, or state any matter which might lead to his discovery.

(2) Subject to subsection (3), if any books, documents or papers which are produced in evidence or liable to inspection in any civil or criminal proceeding under this Act, contain any entry in which any informer is named or described or which might lead to his discovery, the court shall cause all such passages to be concealed from view or to be obliterated, but only to the extent necessary to protect the informer from discovery.

(3) If on trial for any offence under this Act, the court, after full enquiry into the case, believes that the informer wilfully made in his complaint a material statement which he knew to be false or did not believe to be true, o

39 PART VIII PROVISIONS AS TO TRIALS AND PROCEEDINGS-39. Compounding of offences.

Any senior officer of customs may compound any offence which is prescribed to be a compoundable offence by accepting from the person reasonably suspected of having committed such offence a sum of money not exceeding five thousand ringgit.

[Am. Act A1060]

40 PART VIII PROVISIONS AS TO TRIALS AND PROCEEDINGS-40. Conviction under other law.

Nothing contained in this Act shall prevent the prosecution, conviction and punishment of any person according to the provisions of any other written law for the time being in force in Malaysia or any part thereof:

Provided that no person shall be punished more than once for the same offence.

40A PART VIII PROVISIONS AS TO TRIALS AND PROCEEDINGS-40A. Court Order.

Where any person is found guilty of an offence under section 29 or 32, the court before which that person is found guilty shall order that person to pay to the Director General the amount of service tax due and payable, or any penalty payable under this Act, if any, as certified by the Director General and such service tax or penalty shall be recoverable in the same manner as a fine as provided under section 283 of the Criminal Procedure Code [Act 593].

[Ins. Act A1060]

41 PART IX REGULATIONS-41. Regulations.

The Minister may make regulations to prescribe and regulate -

(a) the issue of licence;

(b) the place at which the service tax is to be paid and collected;

(c) the remission at the discretion of the Director General of small amounts of service tax;

( ca ) the circumstances under which payment by instalments may be allowed;

[Ins. Act A1060]

( cb ) the issuance of invoices or receipts;

[Ins. Act A1060]

( cc ) the production of invoices or receipts by computer;

[Ins. Act A1060, Am. Act A1111]

(cd) all matters relating to bad debts for the purposes of this Act;

[Ins. Act 1182]

(ce) the conduct of all matters relating to customs rulings;

[Ins. Act A1281]

42 PART X ADMINISTRATION AND MISCELLANEOUS MATTERS-42. Functions and powers of Director General and other officers.

(1) The Director General shall have the superintendence of all matters relating to the service tax, subject to the direction and control of the Minister.

[Am. PU(A) 283/2002]

(2) Subject to the general direction and supervision of the Director General, all officers of Customs and Excise appointed under section 3 of the Customs Act 1967 and holding the rank of Superintendent or any rank higher than that of Superintendent shall have and exercise all powers conferred on the Director General by or under this Act.

(3) It shall be the duty of any proper officer to enforce, and ensure due compliance with, the provisions of this Act, and to make all due enquires in relation thereto.

(4) Every person employed on any duty or service relating to the service tax by the order or with the concurrence of the Director General (whether previously or subsequently expressed) shall be deemed to be the proper officer f

43 PART X ADMINISTRATION AND MISCELLANEOUS MATTERS-43. Officers to be public servants.

Every person employed on any duty or service relating to the service tax shall be deemed to be a public servant within the meaning of the Penal Code.

44 PART X ADMINISTRATION AND MISCELLANEOUS MATTERS-44. Authority cards, etc , to be produced.

(1) Every officer when acting against any person under this Act, shall, if not in uniform, on demand declare his office and produce to the person against whom he is acting such badge or authority card as he has been directed to carry under section 9(1) of the Customs Act 1967.

[Am. Act A1060]

(2) It shall not be an offence for any person to refuse to comply with any request, demand or order made by any officer acting or purporting to act under this Act, if such officer is not in uniform and refuses to declare his office and produce his badge or authority card on demand being made by such person.

[Am. Act A1060]

45 PART X ADMINISTRATION AND MISCELLANEOUS MATTERS-45. No costs or damages arising from seizure to be recoverable unless seizure without reasonable or probable cause.

No person shall in any proceedings before any court in respect of the seizure of any thing seized in the exercise or the purported exercise of any power conferred under this Act, be entitled to the costs of the proceedings or to any damages or other relief other than an order for the return of the thing or the payment of its value unless the seizure was made without reasonable or probable cause.

46 PART X ADMINISTRATION AND MISCELLANEOUS MATTERS-46. Service of notices, etc.

(1) Every notice, direction or other document required by this Act to be served on any person may be served-

( a ) personally upon that person; or

( b ) by sending it to that person by registered post.

(2) A notice, direction or other document sent by registered post to a person shall be deemed to have been served on that person at the time at which it would have been delivered to that person in the ordinary course of the post if such notice, direction or other document was addressed-

( a ) in the case of a company, a firm, a society, an association or other body of persons-

[Am. Act A1111]

(i) to its registered office;

(ii) to its last known address; or

(iii) to any person authorized by it to accept service of process; and

( b ) in the case of an individual, to his

47 PART X ADMINISTRATION AND MISCELLANEOUS MATTERS-47. Clerks and servants may transact business.

The clerks or servants of any person may transact business generally with any proper officer on behalf of the person :

Provided that an officer may refuse to transact business with the clerk or servant unless the person identifies such clerk or servant to the officer as empowered to transact.

[Am. Act A1060]

47A PART X ADMINISTRATION AND MISCELLANEOUS MATTERS-47A. Transaction of business on behalf of taxable person.

(1) Subject to section 47, no person shall transact any business in relation to this Act on behalf of any taxable person, except on matters with regard to-

( a ) refund:

( b ) remission;

( c ) exemption; or

( d ) such other matters as may be approved by the Director General.

(2) The person who transacts business on any of the matters stated in subsection (1) on behalf of a taxable person shall-

( a ) produce a letter of authorization from the taxable person whom he represents; and

( b ) where any prescribed form is required to be submitted for the purposes of the matters being transacted, submit the form that has been signed by the taxable person, except where otherwise allowed by a senior officer of customs.

[Ins. Act A1060]

48 PART X ADMINISTRATION AND MISCELLANEOUS MATTERS-48. Rewards.

The Director General may order such rewards as he may deem fit to be paid to any officer or other person for services rendered in connection with the detection of any offences against this Act.

49 PART X ADMINISTRATION AND MISCELLANEOUS MATTERS-49. Forms to be used.

Where any form has been prescribed under section 41 no person shall, for the purpose of this Act, use any form which is not printed or issued by authority of the Director General:

Provided that the Director General may, at his discretion and subject to such conditions as he may deem fit to impose, permit any person to use forms which are not so printed or issued as aforesaid, or permit the use of any form submitted through an electronic data interchange.

50 PART X ADMINISTRATION AND MISCELLANEOUS MATTERS-50. Disputes and appeals.

(1) Where any person disputes the decision of a proper officer acting in the course of duty under section 42 he may appeal therefrom to the Director General whose decision on such dispute shall, subject to subsection (2), be final.

(2) Any person aggrieved by decision of the Director General may, except in any matter relating to compound, within thirty days of being notified of such decision in writing, appeal to the Customs Appeal Tribunal whose decision shall be final.

[Subs. Act A1281]

[Subs. Act 1182]

(3) All provisions relating to the Customs Appeal Tribunal shall be applicable to this Act.

[Ins. Act A1281]

51 PART X ADMINISTRATION AND MISCELLANEOUS MATTERS-51. Liquidator of company to give notice of winding up, and set aside tax.

(1) Where after the passing of this Act an effective resolution is passed or an order is made for the winding up of a company to which a licence under section 8 or 8A is issued the liquidator of the company shall give notice thereof to the Director General within fourteen days after the passing of the resolution or the making of the order, and shall before disposing of any of the assets of the company set aside such sum out of the assets as appears to the Director General to be sufficient to provide for any service tax that there is or will thereafter become payable in respect of the company, and shall pay such service tax.

[Am. Act A1060]

(2) A liquidator of any such company who fails to give notice to the Director General within the time specified in subsection (1) or fails to provide for payment of the service tax as required by that subsection shall be personally liable for any service tax that is or becomes p

52 PART X ADMINISTRATION AND MISCELLANEOUS MATTERS-52. Appointment of receiver to be notified to the Director General.

(1) Where a receiver is appointed of the property of a taxable person to whom a licence under section 8 or 8A is issued the receiver shall give notice thereof to the Director General within fourteen days after the appointment being made, and shall before disposing of any of the assets of that taxable person set aside such sum out of the assets as appears to the Director General to be sufficient to provide for any service tax that there is or will thereafter become payable in respect of the taxable service that have been provided by that taxable person before the appointment of the receiver, and shall pay such service tax.

[Am. Act A1060]

(2) A person appointed as receiver who fails to give notice to the Director General within the time specified in subsection (1) or fails to provide for payment of the service tax as required by that subsection shall be personally liable for any service tax that is or becomes payab