A business purchases 10 digital televisions for use in its offices. When the televisions arrive at the workplace the owner of the business decides that one will be taken home. The total cost of the acquisition was $16,500 (GST inclusive).
Describe how you would process this to comply with taxation reporting requirements. How much input tax credit could be claimed and why?
The Australian tax office requires you to submit the BAS monthly, quarterly or annually and the BAS is used to report the GST and PAYG instalments, PAYG withholding tax and other tax obligations.
In the case of the ten televisions they should all be under taxation, and this is because they were bought to be used in the business.
Only 9 televisions can be claimed for business purposes, have not clearly explained how much input tax credit can be claimed in the BAS, what fields are used and how is deprecation considered and processed.
GST Credits can only be claimed for purchases that are used for business. Accordingly, purchases for personal use do not apply for GST Credits. Respectively: 16 500/10 = 1 650,00 cost of each TV 1,650 x 9 = 14,850.00 is taken into account for GTS Credits 1,650 х 1 = 1,650 loans do not pretend 14 850 / 1.1 = 13 500 Claims GST Credits are 1,350.00
The moment you’ve entered the education system is the moment you start to realize that, although studying is extremely important,…
APPROVED BY CLIENTS
My experience with assignment experts was beyond amazing. From the very beginning I must admit, I was a bit skeptical because of all the horror stories I read doing my research on which site I wanted to use. I decided on using assignment experts because they were able to do more technical coursework like building prototypes. The team was very responsive. I was able to provide all I needed and after their review, they came back with a more than reasonable price especially for all that I was asking them to do. They met every deadline before the due date and was completely open to changes if necessary. What really sold me on this site was when my professor told me I used the wrong program for my assignment. I went back to the team and they completely redid the assignment without any additional charge. This site is exceptional and I am so glad I decided to use them. I highly recommend this service.