Search - consideration

Ruling Given Based on the facts set out above, we rule that the levy XXXXX is consideration for a taxable supply. ... The levy paid to the XXXXX in respect of such services is regarded as consideration for these services. ... Yours truly, Susan Mills Specialty Tax Unit Financial Institutions and Real Property Division Excise and GST/HST Rulings Directorate Legislative References: 123(1) definition "supply", "consideration", "commercial activity", "service"; 165(1); 240. ...

An upfront commission under this agreement is consideration for a financial service and GST/HST would not apply. ... In these circumstances, the trailing commissions are the only consideration for the supply provided by the dealer. ... As such, the ongoing fee received for the supply of such services would be consideration for a taxable supply. ...

Response Pursuant to subsection 153(4), where a person trades in used tangible personal property on the purchase or lease of another property, the GST/HST is calculated on the difference between the amount credited as a trade-in allowance and the value of consideration of the other property. ... As a result, the lien is ignored when determining consideration for GST/HST purposes. ... Subsection 153(4) sets the amount of consideration on which tax applies in a certain situation; it does not create a right. ...

As explained herein, the CRA's position is that these amounts are consideration for taxable supplies, and not consideration for exempt supplies. ... We learned that some funeral homes have not charged or accounted for GST/HST on these amounts based on information provided by the CRA in 1994, that the amounts were consideration for exempt supplies of financial services. ... After careful consideration of the issue, we have concluded that the instalment payment charges are consideration for taxable supplies. ...

Section 165 provides that the tax in respect of the supply be calculated on the value of the consideration for the supply. As defined in subsection 123(1), consideration "includes any amount that is payable for a supply by operation of law". ... The $XXXXX is the value of consideration for the bag that is charged by the retailer. ...

A "purchaser" of an exclusive product of a direct seller means a person who is the recipient of a supply of the product and who is not acquiring the product for the purpose of supplying it for consideration. The $XXXXX shipping and handling fee is, in our opinion, part of the suggested retail price of the direct seller's exclusive products and consequently forms part of the consideration for the supply of the products under the ACM. ... The XXXXX% shipping fee is not part of the suggested retail price, and therefore, is not part of the consideration for the supply of the exclusive products under the ACM. ...

Generally, the "recipient" of a supply is defined under subsection 123(1) to include, "(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, (b) where paragraph (a) does not apply and consideration is payable for the supply, the person who is liable to pay that consideration, and... ... In any situation, where a person acts as agent on behalf of another person (principal) in acquiring or importing property or services, it is the principal who is liable to pay the consideration in respect of the supply, and, therefore, is the recipient of the supply. As a result, if an expense is incurred as an agent on behalf of a principal and the agent pays the consideration and tax on behalf of the principal, it is the principal who is considered to be the recipient and to have incurred the expense and may be may be entitled to claim an ITC in respect of the tax payable. ...

(the "Retailer") accepted these coupons as partial consideration towards the purchase price of Manufacturer products. ... The allowance is not consideration for a supply made by the reseller to the supplier. The allowance may take the form of a reduction of consideration of goods previously sold. ...

If Metered Street Parking is considered as the supply under consideration, section 10 of Part VI of Schedule V to the ETA will not apply as less than "substantially all" Metered Street Parking is supplied for no consideration. ... To determine whether "substantially all" of a recurring supply like parking is supplied for no consideration similar properties of parking are considered. ... In the present situation the supply under consideration is the supply of Metered Street Parking. ...

Ruling Given Based on the facts set out above, we rule that the payment for the Fixed Unit Resale Fee and the Depreciation Charge is additional consideration for the supply of the Unit by way of lease that is an exempt supply pursuant to paragraph 6(a) of Part I of Schedule V. We rule that the Restoration Charge is not consideration for a supply and is not subject to GST. ... The amount is not consideration for a supply and is not subject to GST. ...