Search - consideration

Response Based on the information provided, an automobile dealer, who operated under the previous rules contained under paragraph 176(1)(a) of the Excise Tax Act (ETA) during the transitional relief period, is entitled to claim an NITC if all of the following conditions are met: 1. the sale of the new vehicle to the Indian and the purchase of the used vehicle are both done pursuant to a written agreement entered into before July 1, 1996; 2. the used vehicle is accepted as full or partial consideration for the supply of the new vehicle to the Indian; 3. the automobile dealer charged or collected GST calculated on the full price of the new vehicle sold to the Indian; 4. the Indian is not required to charge tax on the supply of the used vehicle to the automobile dealer; and 5. the automobile dealer is acquiring the used vehicle from an Indian for the purpose of consumption, use or supply in the course of commercial activities of the automobile dealer. With respect to point number three, where an automobile dealer makes a taxable supply of a new vehicle to an Indian, the automobile dealer is considered to have charged (but not collected) GST on the consideration for the vehicle sold to the Indian for the purposes of the ETA. ... Response Based on the information provided, irrespective of whether or not the person supplying the used vehicle to the automobile dealer is an Indian, an automobile dealer who operated under the previous rules contained under paragraph 176(1)(a) of the ETA during the transitional relief period is entitled to claim an NITC equal to 7/107 of the consideration for the supply of the used vehicle, provided that the automobile dealer is acquiring the used vehicle from the Indian for the purpose of consumption, use or supply in the course of commercial activities of the automobile dealer. ...

Interpretation Given Based on XXXXX of the Act, no tax is payable in respect of the consideration for a supply of a service of a personal representative or trustee to the extent that the consideration relates to any part of the service that was performed before 1991 and does not become due until either (a) approved by all beneficiaries of the estate (b) in accordance with the terms of the trust binding the personal representative, or (c) as approved by the Court. ... The onus is on you to prorate the consideration for the services on a reasonable basis in order to account for the tax accurately. ...

In the submitted example, the marina operator is supplying counseling services to the purchaser for consideration corresponding to XXXXX of the sale price. ... The consideration for the service corresponds to XXXXX of the purchase price in the typical case examined. The recipient of the service is the purchaser, who assumes the liability to pay the consideration. ...

You requested an interpretation as to whether GST/HST is payable under subsection 165(1) of the Excise Tax Act (ETA) in respect of damage payments made by a law firm to its client, or whether such payments are deemed to be consideration for taxable supplies under subsection 182(1) of the ETA. ... Subsection 182(1) applies only where, because of a breach, modification or termination of an agreement, the recipient pays an amount to the supplier in addition to the consideration. 2. Subsection 165(1) does not apply to the situation, because the damage payments are not consideration for a supply. ...

Interpretation Given In order for the reimbursement of the costs to have been subject to the GST, the reimbursement must have been consideration for the supply of property or a service. ... If there was no supply, the reimbursement would not have been regarded as consideration for a supply and, as a result, there would not have been any tax implications. ... If this was the case, the reimbursement would have been regarded as consideration for the supply of a service (i.e., a service of administering the share buyback program). ...

Interpretation Requested Do the payments from XXXXX to XXXXX and XXXXX constitute consideration for a supply? Interpretation Given It is the Department's view that a supply of real property is not being made and the payments made by XXXXX to XXXXX and XXXXX are not consideration for a supply of real property. ... It is the Department's view, however, that the payments made by XXXXX to XXXXX and XXXXX are not consideration for a supply. ...

Generally, a damage payment is not consideration for a supply, as it is compensatory or punitive in nature, and not given in exchange for a supply of property or services by another party. ... However, where as a result of a breach, modification or termination of an agreement for a 7% or 15% taxable supply, the recipient is required to pay or forfeit an amount to the registrant supplier, or reduce or extinguish a debt or other obligation of the supplier, section 182 of the Excise Tax Act provides that the recipient is deemed to have paid an amount as consideration and tax, in respect of the original agreement to make a supply. ... If the supply of property or service being obtained is taxable, and if the payee is a registrant, 7% or 15% tax will apply, Also, if a judgement or settlement requires a person to pay a third party to provide repairs, rather than to pay damages or consideration to the supplier, the person paying for the repairs is receiving a supply from the third party. ...

If it is established that a supply takes place in return for a transfer payment, the payment may be regarded by the Department as "consideration" for a supply. However, in general, transfer payments made in the public interest or for charitable purposes will not be regarded as consideration for a supply. Based on the information described above, the transfer payments made by the XXXXX XXXXX appear to be in the public interest and would not be regarded as consideration for a supply. ...

" You are requesting clarification on whether the amounts awarded by the XXXXX to the XXXXX represent consideration for a supply, and whether the XXXXX should include these amounts in the percentage of government funding calculation set out in the Public Service Body Rebate XXXXX (GST/HST) Regulations to determine whether it is a "qualifying non-profit organization" for the purpose of claiming a rebate under section 259 of the Excise Tax Act. It is the Department's view that generally, judicial costs awarded by the courts are not consideration for a supply. ... Consequently, as the costs awarded by the XXXXX are not consideration for a supply, then the XXXXX would not include these amounts, i.e., "intervenor fees," under "B" of the formula in paragraph 3(1)(a) of the Public Service Body Rebate (GST/HST) Regulations in determining whether the XXXXX meets the "percentage of government funding" test. ...

Section 5 of Schedule VII to the Act states that goods that are imported by a particular person where the goods are supplied to the particular person by a non-resident person for no consideration, other than shipping and handling charges, as replacement parts under a warranty in respect of tangible personal property, are entitled to non-taxable importation. ... Furthermore, the goods must be supplied for no consideration, other than shipping and handling charges. Although the defective XXXXX are exchanged for remanufactured XXXXX XXXXX and are provided at no charge to the XXXXX and are shipped prepaid from XXXXX, satisfying the condition that the goods be supplied for no consideration, the goods are not supplied under a warranty. ...