Preview

Introduction to Gst

Good Essays
Open Document
Open Document
546 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Introduction to Gst
WEEK 9
Introduction to GST * A goods and services tax (GST) was introduced into Australia on 1 July 2000 * It is a tax levied at the rate of 10% on the supply (sale) of most services and goods * Business registered under the GST legislation collect the tax on behalf of the Australian tax office (ATO) and remit the amounts collected to the ATO at regular intervals * Business are allowed to offset and GST they pay on buying services and goods against the GST collected on supplies * Any business which is registered for GST typically has two accounts: * GST collection (GST payable in the GST legislation) for any GST received or receivable by the entity from its customers. This is what the company “owes” to the government. Therefore, it a liability * GST Outlays (GST credit in the GST legislation) for any GST paid or payable by the entity to its suppliers. This is what the entity can claim as a refund from the government. Therefore, is an asset all * All supplies of services and goods are subject to GST unless they are Non-taxable * There are two types of non taxable supplies * “GST-free” supplies are services and goods that would normally attract GST but are exempted under the legislation. (e.g. fresh food, educational courses, wages and salaries, capital contribution and withdrawals) * “Input taxed” supplies (e.g. bank fees, bank charges, a loan from a bank)

Items | GST/No GST | Contribution of cash by the owner | No GST | Purchase of supplies on credit | GST | Payment of tuition fees | No GST | Payment of wages to employees | No GST | Sales of service on credit | GST | Cash paid to accounts payable | No GST | Purchase of services for cash | GST | Interest received from a bank | No GST | Cash received from accounts receivable | No GST |

Accounting for GST

* The GST legislation provides rules for allocating GST payable and GST credits to the relevant tax period *

You May Also Find These Documents Helpful

  • Better Essays

    of any item of gross income shall be included for the taxable year in which…

    • 2389 Words
    • 9 Pages
    Better Essays
  • Better Essays

    Tax and Quick Books

    • 803 Words
    • 4 Pages

    GST: Goods and service tax is a value added tax of 10% in most services and goods, it is imposed on most of the transactions but refunded later with certain process.…

    • 803 Words
    • 4 Pages
    Better Essays
  • Best Essays

    Boral Limited

    • 2384 Words
    • 10 Pages

    Revenue is recognized at fair value of the consideration received net of the amount of goods and services tax (GST). When events occurred like risks or rewards of ownership were transferred to buyer, revenues are recognised. Revenues from dividends are recognised upon declaration by controlled entities.…

    • 2384 Words
    • 10 Pages
    Best Essays
  • Powerful Essays

    Retailers act as collecting agents for the federal government. Stores charge their customers GST, but the GST belongs to the federal government. The store has a liability to pay the federal government (Receiver General) the amount of tax collected less applicable input tax credits.…

    • 6188 Words
    • 72 Pages
    Powerful Essays
  • Good Essays

    Gst Free Threshold

    • 2226 Words
    • 9 Pages

    A recently story by Clancy Yeates from the Courier Mail dated December 3rd 2012, discusses groundwork laid out by the Australian Federal Government. The government aims to reduce the thousand dollar GST free threshold for goods bought from overseas online stores. The article refers to the assistant Treasurer David Bradbury and how he feels the policy will affect on retailers. Bradbury states “while this is not the biggest challenge confronting the retail sector, the government does recognise that on the basis of fairness and tax neutrality Australian retailers should not be disadvantaged by taxation arrangements which favour overseas retailers”. Bradbury also states “the government also acknowledges that the current threshold of $1000 at which GST is collected on low value parcels is very high by international standards”. Currently, it is one of the highest thresholds in the world.…

    • 2226 Words
    • 9 Pages
    Good Essays
  • Good Essays

    Legt2751 Mid Sem

    • 972 Words
    • 4 Pages

    Wilh a GST ti€e supply lhe enterpdse makng the suppy does not pay GSTon ls purchas€s but musl charge GSI on ils suppties Wlthen npul taxed supply rhe €nt€lpris€ maki.g (he supply does nol charoe Gsr on…

    • 972 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Company Analysis

    • 6893 Words
    • 28 Pages

    Taxation: GST pricing guidelines state that retail prices on goods and services must be GST inclusive (IBIS World Industry Report, 2007, p19).…

    • 6893 Words
    • 28 Pages
    Powerful Essays
  • Powerful Essays

    5. Kenny and Duke must also obtain an Australian Business Number (ABN). Following the introduction of the GST in 2000, all businesses in Australia should have an Australian Business Number or they may be liable for the withholding of 48.5% on payments.…

    • 2640 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    collecting the applicable tax from taxpayers. In the course of its duties, it also develops a…

    • 27245 Words
    • 109 Pages
    Good Essays
  • Powerful Essays

    Top 5

    • 3959 Words
    • 16 Pages

    We sold a computer for $1,100 (GST 100). We bought it for $2,900 and had a depreciation of $1,520. So it had a written down value of $1,380 (2,900-1,520), resulting in a loss of $380.…

    • 3959 Words
    • 16 Pages
    Powerful Essays
  • Powerful Essays

    According to the accounting practice in business, companies will always be levied by the federal through the income tax payable that will become the company’s income tax expense when it is paid. The tax net includes the personal profit, business income, and the capital gain. Referring to Australian Accounting Standard Board (AASB) 112, the income tax expense (income) is not merely equal to current tax liability (asset), but also the function of the deferred tax liabilities and assets (Leo, Hoggett, & Sweeting, 2012). The tax which incurred to a company will depend on the company’s performance. If the company gets a positive taxable income, then the company has to pay 30% of it to the federal. However, if a company suffers a tax loss, the company doesn’t need to pay the tax imposed. The tax loss itself will be carried-forward to the next financial year to reduce the tax liabilities in that period. This paper will elucidate how unused tax losses create deferred tax assets and elaborate if these deferred tax assets satisfy definition and recognition criteria for assets according to the AASB Framework for the Preparation and Presentation of Financial Statements. Additionally, it also discusses whether the deferred tax assets satisfy the definition criteria of asset refer to the Financial Accounting Standard Board (FASB) proposed Conceptual Framework.…

    • 1434 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Australia GST

    • 1009 Words
    • 5 Pages

    During Phil and Ina farm business, the selling the grape is considering as GST-free supply and taxable supply on wool products for it meets the taxable supplies criteria. There are three basic types of supplies in Australia which are taxable supplies, GST-free supplies and input-taxed…

    • 1009 Words
    • 5 Pages
    Good Essays
  • Better Essays

    into four categories; GNI based, VAT based, Traditional and other. 65% of revenue is GNI based. All of the…

    • 1118 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Introduction to Taxation

    • 4975 Words
    • 20 Pages

    * Deductions for AGI if incurred in trade or business and any fees incurred in the determination or collection of taxes…

    • 4975 Words
    • 20 Pages
    Powerful Essays
  • Satisfactory Essays

    swagswgaswga

    • 279 Words
    • 2 Pages

    The Society is not registered for GST and GST is not charged on our subscription.…

    • 279 Words
    • 2 Pages
    Satisfactory Essays