Updated: 04/11/2014 17:36 | By Channel NewsAsia
Manufacturer to pay S$170,000 in taxes and penalty for failing to register for GST
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SINGAPORE: A manufacturer of metal doors and windows, Creative Engineering Works, has to pay about S$170,000 in taxes and penalty for failing to register for Goods and Services Tax (GST).
The court also ordered the company to pay a fine of S$5,500.
Creative Engineering Works is the second company to be charged in court this year for such offences.
A GST-registered business is required to charge GST on its sales.
It can then offset this with the GST it pays on its purchases before accounting for the net difference to the Inland Revenue Authority of Singapore (IRAS).
IRAS reminds all businesses to regularly assess if they need to register for GST.
Businesses must register for GST if their turnover for the past four quarters or expected turnover for the next 12 months exceeds S$1 million.
IRAS said this should be done within 30 days of the date their 12-monthly turnover crosses the S$1 million mark.
Businesses which fail to register for GST even though they are required to do so by law can be fined up to S$10,000.
They also have pay a penalty equal to 10 per cent of the tax due from the date on which the business is required to register for GST. - CNA/ms
