ALL sales tax registered manufacturers are entitled to apply for tax exemption and subsequently, upon approval, eligible to acquire taxable manufacturing inputs (raw materials, components, packaging and consumables) free from sales tax when purchased directly from other registered manufacturer or import subjected to approval conditions.
Anyway, the exempted purchased/imported goods are meant for MANUFACTURING OF TAXABLE GOODS only. Any BREACH of approval conditions may subject to Recovery of Sales Tax by JKDM or penalty if fail to notify making the inventory management of the exempted goods becomes crucial especially if handling hundreds or thousands types of raw materials/ components.
In addition, inventory reports shall be prepared quarterly and submitted to Customs Control Station upon request by JKDM Officers. Failing which may result in discontinue of the exemption facility.
This program will focus on practical aspect in managing the tax exempted goods as well as all related reports.