Search - consideration

As you are aware, a supply of a meal plan is exempt of the HST where the single consideration paid by a student for the meal plan is sufficient to provide the student with at least 10 meals each week for the period of the plan, which must not be less than one month. ... As such, the supply of the meals is considered to be made at the time the meal plan is sold and the single consideration for the supply of the meals is considered to be due at the time the amount is payable for the plan. ... In order for meals under a meal plan to qualify for a point-of-sale rebate of the provincial portion of the HST in the province of Ontario, the total of all consideration for meals sold to the student when they purchase the meal plan would have to be four dollars or less. ...

[the Corporation] Thank you for your fax of August 5, 2010, and your subsequent telephone conversations with us of September 22, October 1 and October 5, 2010, concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the transfer of motor vehicles to a partnership in the context of a section 156 election (election for nil consideration). ... Interpretation Given Section 156 allows certain members (defined as "specified members") of a closely related group of corporations and/or partnerships resident in Canada to elect to treat certain supplies between them as having been made for no consideration if those member corporations and/or partnerships meet certain requirements. Persons meeting the eligibility requirements for making the election complete form GST 25- Closely Related Corporations and Canadian Partnerships- Election or Revocation of the Election to Treat Certain Taxable Supplies as having been made for Nil Consideration. ...

Generally, this supply is provided for a single consideration. C) multiple supplies, consisting of (i) an exempt dental service described in B above and (ii) a zero-rated supply of an orthodontic appliance and/or a zero-rated supply of artificial teeth. ... Generally, this is indicated where consideration for the supply of the orthodontic appliance (or artificial teeth) is identified separately from the consideration for the exempt supply of the dental service. ... ITCs in respect of the supply of orthodontic appliances For administrative purposes, the CRA accepts that dentists who claim ITCs on a periodic basis can use an estimate of 35% of the cost to the patient of the orthodontic treatment to represent the 'consideration' for the supply of the orthodontic appliance. ...

Subsection 148(1) of the ETA provides that a person is a small supplier during any particular calendar quarter and the following month if the total value of the consideration for world-wide taxable supplies, including zero-rated supplies, made by the person (or an associate of the person at the beginning of the particular calendar quarter) that became due, or was paid without becoming due, in the previous four calendar quarters does not exceed $30,000 or, where the person is a public service body, $50,000. ... Subsection 148(2) of the ETA provides that a person ceases to be a small supplier at any time in a calendar quarter if the total value of the consideration that becomes due, or is paid without becoming due, in that quarter for world-wide taxable supplies (other than consideration attributable to the sale of goodwill of a business, supplies of financial services, and supplies by way of sale of capital property) made by the person, or an associate of the person at the beginning of the calendar quarter, exceeds $30,000 or, if the person is a public service body, $50,000. The person ceases to be a small supplier immediately before the consideration becomes due or is paid for the particular taxable supply that puts the person over the $30,000 or $50,000 small supplier threshold. ...

The general rule is that tax is payable by the recipient on the earlier of the day that consideration for a taxable supply is paid or the day that consideration becomes due. Subsection 152(1) deems consideration for a taxable supply to become due on the earliest of the following days: (a) the day that the supplier first issues an invoice in respect of the supply; (b) the day of the invoice; (c) the day when, but for an undue delay, the supplier would have issued an invoice in respect of the supply; and (d) the day that consideration is due pursuant to an agreement in writing. ...

Ruling Given Based on the facts set out above, we rule that the XXXXX Levy, currently set at XXXXX percent and payable by the recipient would not be included in the value for consideration by virtue of paragraph 154(2)(b) of the ETA and the Regulations. ... Pursuant to section 154 a prescribed provincial levy is not included in the consideration for a supply of property or a service, and therefore is not subject to GST. However, should other and/or increased rates of taxes be imposed under the XXXXX Act on the XXXXX products under consideration the ruling may have to be reconsidered. ...

No money for consideration is paid from B to A relating to the assignment. 3. ... b) If so, what is the value of consideration? If value is determined to be the amount transferred, what are the ramifications for grandfathered funerals? ... Given that B has accepted the assignment from A and, notwithstanding that there are no changes to the plan, B, the new supplier, is required to charge GST on the value of the consideration for the supply of the funeral service as provided for in the prearranged funeral plan. ...

As you have noted, Q & A number 6 A.340 states that where the total amount is itemized separately, only the amount which is consideration for the right to enter onto the land is covered by subsection 162(1). ... The consideration for the subsequent years is calculated based on the loss of use, adverse effect and severance, and other factors if applicable. ... In addition, it does not appear that, in this example, the elements used to calculate the consideration are properties or services provided to (i.e. supplies made to) the Lessee. ...

. •   The assignment of the collateral (defined above) by the Assignor is in consideration of the advance, by the Assignee, of the principal amount, and a further amount of XXXXX due and payable on the 1st day of April, 1996 •   Pursuant to the agreement, the Assignor will observe all obligations binding upon it as lessor under the lease, and will save the Assignee harmless from all liability with relation to the lease. •   The Assignor will also collect the lease payments on the Assignee's behalf and will cause the equipment to be insured. ... If the lease does not terminate early, title to the equipment will be reconveyed automatically by the Assignee to the Assignor in consideration and satisfaction of the XXXXX[.] •   The Assignee covenants that upon payment in full of the lease payments and the other payments, it will cancel this assignment agreement, prepare and deliver to the Assignor such discharge documents required to discharge the agreement and any security registration documents filed. ... Our conclusion is based on the fact that the agreement includes provisions that are indicative of the transfer being done for the purposes of securing a loan, such as the following in Schedule A: "the assignment of the collateral by the Assignor is in consideration of the advance by the Assignee, of the principal amount... and a further amount of XXXXX... due and payable on the 1rst day of April 1996" the following in clause 8, which provides that the Assignee will: "apply any Lease Payments or any other payments received by it (from the Lessee, the Assignor or otherwise) first to the payment of accrued interest, then to the payment of other amounts then due and then to the outstanding principal owing the Assignee, and to pay the excess to the Assignor". the following in clause 4 which provides that upon payment in full of the Lease Payments, the Assignee shall: "cancel this Agreement and deliver all such cancelled documents to the Assignor... and deliver to the Assignor such discharges and other documents as the Assignor may reasonably require to discharge this Agreement and any security registration statements filed in connection therewith" and the provisions in subclauses 17(2) and ss. 17(3) which provide that at the expiry of the term of the lease, title to the property will be reconveyed to the Assignor in full consideration for and satisfaction of the XXXXX[.] ...

The value of the consideration for the goods and services supplied by the host should be determined by calculating the difference between the amounts billed either to the patient or the dental plan carrier and the amount the associate either retains for himself or is remunerated by the host. ... If the associate pays the agreed upon percentage to the host, the associate is liable to pay the GST on that amount, if the host retains an agreed upon percentage, then the host is liable to withhold and remit the GST calculated on the amount of consideration withheld. 2. ... However, in a situation where an "associate", "independent contractor" or other similar arrangement is in effect, the facts may reveal there is a supply being provided for consideration and this is subject to the GST at 7%. 4. ...