Property Hunter Magazine October Issue 2014 | Page 84

/// Banking and Investment News

GST to Be Imposed on Uncompleted Commercial Properties
uncompleted portion. For instance,
a project that is only 40 percent
complete on 31 March will be levied
GST on the remaining 60 percent.
According to BDO Malaysia advisory
executive director Mok Chew Yin,
“The bearer of this tax will depend
on the agreement between the
contractor and the developer, and
between the developer and the
buyer.”
He noted that if it was not stated in
the agreement that such tax will be
passed on to the buyer, then the tax
will be absorbed by the developer.

A scale model of a multi-storey complex development

Goods and Services Tax (GST) will be
imposed on commercial properties
that are not completed by 1 April
2015, reported the media.

Notably, projects under construction
will be valued on 31 March, with
GST imposed on the project’s

“Ultimately, the implementation of
GST is likely to bring about a slight
increase to residential property
prices in general – perhaps two
percent to three percent by my
estimation – as developers would not
be able to claim input tax as sale of
residential properties is exempted,”

said Mok.
“The increased cost will either be
passed on to buyers or absorbed
by the developer or shared, but it
wouldn’t be as high as six per cent.”
However, BDO tax/GST executive
director Jeff O’Connell explained that
GST would actually reduce cost to
businesses in some cases since GST
input tax can be claimed, unlike the
sales and services tax, which cannot
be claimed.
“The Price Control and AntiProfiteering Act is in place to
safeguard against profiteering from
the implementation of GST,” said
O’Connell.
This story was first published by
www.propertyguru.com.my and is
reproduced as part of an editorial
partnership between Property
Hunter and PropertyGuru Group.

Homebuyers Warned Against Syndicate Collecting Deposits
housing units in the five districts
and the selection by the Selection
Process Enhancement Committee
(SPEC) would soon take place.
“The housing units will go to those
truly deserving.
“So, I hope the public will be aware
and not fall prey to such syndicates,”
he urged.

Housebuyers here need to be
more cautious not to fall victim to
a syndicate which is going around
securing payments for units at an
affordable housing project developed
by the state.

Speaking after launching a corporate
social responsibility programme by
KDU College Penang at Cheshire
Home here on Friday, Jagdeep said
the developer had lodged a police
report about the matter on July 22.

Penang Town, Country and Housing
Committee chairman Jagdeep Singh
Deo said there were claims that
the syndicate was promising and
guaranteeing affordable units at a
project in Tanjung Tokong.

“I have written a letter to state police
chief Senior Deputy Comm Datuk
Wira Abdul Rahim Hanafi to look into
the matter.” - Jagdeep Singh Deo

He said the developer’s company
which was developing the project
at the site had received several
complaints from the public that
there were members of a suspected
syndicate going around promising
affordable units at the project
by taking a payment of between
RM10,000 and RM30,000.

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He said he had also written a letter
to state police chief Senior Deputy
Comm Datuk Wira Abdul Rahim
Hanafi to look into the matter.
“I have received a reply from his
office dated July 25 that they received
my letter and the matter was under
investigation.

“I hope the problem can be resolved
as soon as possible,” he said.
Jagdeep assured the public that the
state government’s low-cost and
affordable housing units could not be
secured by any agent or syndicate.
“The public must apply directly to
the state and the application will be
processed before they receive an
approval letter from the developer
if they are eligible for the units,” he
said.

“I have written a letter to
state police chief Senior
Deputy Comm Datuk Wira
Abdul Rahim Hanafi to
look into the matter.” Jagdeep Singh Deo

He added that the concerned project
in Tanjung Tokong has 390 units of
low mediumcost apartments and 859
units of affordable condominiums
located on a 4ha site.
Jagdeep said that about 50,000
applicants had applied for affordable

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