Hi
I have a GST registered property trading entity.
I have a property that I have renovated and claimed GST on it back in September and it is currently on the market for sale.
I have tenants in the property who are paying rent.
If the property is not going to be sold before the end of the financial year (March 2012), I need to know how to calculate the rent as an income.
Rent is considered as a supply and is not subject to full 15% GST.
GST adjustment are calculated according to the formula found at example 9 on page 38 in TIB Vol 23 No 1 February 2011.
This means that GST adjustment can be done once property is sold.
Therefore, when calculating the rent as an income, how should I deduct the GST portion out of the rent.
Thanks
I have a GST registered property trading entity.
I have a property that I have renovated and claimed GST on it back in September and it is currently on the market for sale.
I have tenants in the property who are paying rent.
If the property is not going to be sold before the end of the financial year (March 2012), I need to know how to calculate the rent as an income.
Rent is considered as a supply and is not subject to full 15% GST.
GST adjustment are calculated according to the formula found at example 9 on page 38 in TIB Vol 23 No 1 February 2011.
This means that GST adjustment can be done once property is sold.
Therefore, when calculating the rent as an income, how should I deduct the GST portion out of the rent.
Thanks
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