Search - consideration

Subsection 231(1) of the Act states that, where a person has made a taxable supply for consideration and, has remitted the tax, and at a later time determines that the consideration and tax have become, in whole or in part, a bad debt, the person may deduct an amount equal to the tax fraction of the bad debt written off in the books of account. ... Any consideration included for financing the purchase, such as interest, would have to be removed before the tax fraction is applied. Therefore, where a bad debt includes consideration for more than one supply, and one or more of the supplies is exempt, the person claiming the bad debt deduction is required to remove that portion of the consideration relating to the exempt supply before determining the tax content of the bad debt. ...

Interpretation Given As you know, subsection 165.1(2) of the ETA states that, "Where the consideration for a supply of tangible personal property or a service is paid by depositing a single coin in a mechanical coin-operated device that is designed to accept only a single coin of twenty-five cents or less as the total consideration for the supply and the tangible personal property is dispensed from the device or the service is rendered through the operation of the device, the tax payable in respect of the supply is equal to zero. ... In order to assist your XXXXX in evaluating their coin-operated amusement machines, the following is a list of some of the types of amusement machines to which subsection 165.1(2) of the ETA does not apply. •   Any machine that can make a supply for total consideration of more than twenty-five cents even if it can also make a supply for consideration of twenty-five cents or less. ... In both of these cases a single supply for consideration of 50¢ has been made. •   Any machine that can accept more than one coin as the consideration for a supply. •   Any machine that can accept coins of denominations exceeding twenty-five cents (e.g. $1 or $2 coins). •   Any machine that is activated by a token, a magnetized card, or anything that is not a coin. ...

If the daycare is a GST/HST registrant, it is required to charge tax on the consideration payable for these services. ... Paragraph 153(1)(b) provides that where the consideration for a supply is other than money, the value of the consideration for that supply is equal to the fair market value of the goods and services received. On this basis, the toys that the daycare receives from the toy company are consideration for the supply of the services rendered by the daycare. ...

XXXXX invoiced the lessees for consideration and HST for the repairs. 7. The lessees paid the consideration for the repairs and filed an insurance claim with respect to this amount. ... Consequently, the only person who may be eligible to claim an ITC in respect of tax on the consideration for a supply is the person who is liable to pay that consideration. ...

As such, there would likely have been no "consideration" to write off. ... Without an amount due as consideration, there cannot be a debt, or for that matter a "bad debt" as described in subsection 231(1) of the ETA. In the case at hand, since the vendor would not likely have been in a position to write-off any consideration, he would not be entitled to a bad debt deduction under subsection 231(1) of the ETA, since one of the conditions that must be satisfied for the purposes of subsection 231(1) of the ETA is that consideration (and tax) must have become in whole or in part a bad debt. ...

It is your understanding that the discount for early payment of the invoice should not be calculated on the consideration paid for the service plus the GST/HST paid on that consideration. ... Section 161 of the ETA provides that where tangible personal property or services are supplied and the amount of the consideration for the supply shown in the invoice in respect of the supply may be reduced if the amount thereof is paid within a time specified in the invoice or an additional amount is charged to the recipient by the supplier if the amount of the consideration is not paid within a reasonable period specified in the invoice, the consideration due shall be deemed to be the amount of consideration shown on the invoice. ...

The Auctioneer charges its clients a commission as consideration for services it performs with respect to the sale of their livestock. ... In other words, the Auctioneer is not required to collect GST on the commissions it receives from its clients as consideration for services it performs with respect to the sale of their livestock. With respect to the various fees and deductions collected because of provincial legislation, the CCRA's position is that the XXXXX deduction and check-off fee are not consideration for a supply, and consequently, are not subject to the GST. ...

Subsection 165.1(2) provides that where the consideration for a supply of tangible personal property or a service is paid by depositing a single coin in a mechanical coin-operated device that is designed to accept only a single coin of twenty-five cents or less as the total consideration for the supply and the tangible personal property is dispensed from the device or the service is rendered through the operation of the device, the tax payable in respect of the supply is equal to zero. ... Suppliers should therefore take this requirement into account when determining the consideration for supplies made through such devices. ... It provides in part that the supplier is deemed to have made the supply, received the consideration for the supply, and collected any tax payable in respect of the supply, on the day when the consideration for the supply is removed from the coin-operated device. ...

Subsection 123(1) of the Act states, in part, that '"recipient" of a supply of property or a service means (a) where consideration for the supply is payable under an agreement for the supply, the person who is liable under the agreement to pay that consideration," I would suggest that a copy of the vehicle sale agreement be obtained from XXXXX. If the agreement for the supply of the van were between XXXXX and XXXXX it is likely that XXXXX would have been liable to pay the consideration, and not the XXXXX orphanage. ...

In your letter, you ask whether the charge by the XXXXX to the XXXXX for the cost of transportation by bus in XXXXX of the XXXXX students qualifies as consideration for an exempt supply under s. 5 of Part III of Schedule V of the Excise Tax Act. You then indicate that even if s. 5 is not applicable, the charge qualifies as consideration for an exempt supply under s. 2 of Part VI of Schedule V. As I indicated in our telephone conversation, we believe that the charge qualifies as consideration for an exempt supply under s. 2 of Part VI of Schedule V. ...