Top 5
PBL 1
GST ACT 1999 s29.40 Choosing to account on a cash basis
Is the GST done on an accruals or cash basis?
Cash basis
GST ACT 1999 s195.1
"GST exclusive market value" , in relation to a supply or acquisition: (a) other than of a * luxury car--is 1 0 / 11 of the * GSTinclusive market value of the supply or acquisition; or (b) of a * luxury car--is 1 0 / 11 of the * GSTinclusive market value of the luxury car (excluding any * luxury car tax that is, or would be, payable on the supply of that car).
What was the cost of the vehicle?
$90,000 GST inclusive
$57,466*60%=$34,480
$34,480*10/11= $31,345 G10
GST=$3,135
How much was the car used for business?
60%
Did you use an ABN number when buying vehicle?
Yes
How is the Car depreciated?
Straight line depreciation over 8 years
What method do we use for the car?
Log-book method, car has driven over 5000km
What is the loss on sale of non-current asset?
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.
GST ACT 1999 s38.3-food that is not GST-free
What are the food sales?
Fresh food - $58,000(GST-free)
Sandwich – $14,000 (GST 1,400)
Microwave Meals – $8,000 (GST 800)
Chocolate, lollies and snacks – $10,650(GST 1,065)
Total – $90,650 (GST free sale 58,000)
GST 1400+800+1065=3265
GST ACT 1999 s38.3(d) Beverage (drink)not GST-free
What are the drink sales?
Milk - $20,800 (GST-free)
Soft Drink – $18,000 (GST 1800)
Orange Juice – $8,400 (100% concentrate orange juice) GST-free
Bottled water – $11,200 GST-free
Total – $58,400 (GST sale 18,000)
GST 1800
GST ACT 1999 s38.50-Drugs and medicinal preparations etc.
What are the health sales?
Sunscreen (30+ SPF) – $14,350 GST-free
Vitamins – $11,680(GST 1168)
Small packets of panadol (20 tablets) – $10,370 GST-free
GST-free Supply
GST ACT 1999 s29.40 Choosing to account on a cash basis
Is the GST done on an accruals or cash basis?
Cash basis
GST ACT 1999 s195.1
"GST exclusive market value" , in relation to a supply or acquisition: (a) other than of a * luxury car--is 1 0 / 11 of the * GSTinclusive market value of the supply or acquisition; or (b) of a * luxury car--is 1 0 / 11 of the * GSTinclusive market value of the luxury car (excluding any * luxury car tax that is, or would be, payable on the supply of that car).
What was the cost of the vehicle?
$90,000 GST inclusive
$57,466*60%=$34,480
$34,480*10/11= $31,345 G10
GST=$3,135
How much was the car used for business?
60%
Did you use an ABN number when buying vehicle?
Yes
How is the Car depreciated?
Straight line depreciation over 8 years
What method do we use for the car?
Log-book method, car has driven over 5000km
What is the loss on sale of non-current asset?
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.
GST ACT 1999 s38.3-food that is not GST-free
What are the food sales?
Fresh food - $58,000(GST-free)
Sandwich – $14,000 (GST 1,400)
Microwave Meals – $8,000 (GST 800)
Chocolate, lollies and snacks – $10,650(GST 1,065)
Total – $90,650 (GST free sale 58,000)
GST 1400+800+1065=3265
GST ACT 1999 s38.3(d) Beverage (drink)not GST-free
What are the drink sales?
Milk - $20,800 (GST-free)
Soft Drink – $18,000 (GST 1800)
Orange Juice – $8,400 (100% concentrate orange juice) GST-free
Bottled water – $11,200 GST-free
Total – $58,400 (GST sale 18,000)
GST 1800
GST ACT 1999 s38.50-Drugs and medicinal preparations etc.
What are the health sales?
Sunscreen (30+ SPF) – $14,350 GST-free
Vitamins – $11,680(GST 1168)
Small packets of panadol (20 tablets) – $10,370 GST-free
GST-free Supply