Search - consideration

Proposed subsection 153(4) of the ETA provides rules in respect of calculating the value of the consideration for a supply of tangible personal property made by a supplier. The proposed subsection reduces the value of the consideration for such a supply (where all the other conditions of the subsection have been met). The amount of the reduction is equal to the value of the consideration for the trade-in. ...

If you refund all or part of the consideration that relates to your supply of a tour package or air only transportation to your customer who has cancelled their trip, then you may provide a refund or adjustment of the GST to your customers, provided you issue a credit note. ... If your customer has purchased trip cancellation insurance, and it is through that insurance that your customer obtains a "refund", then no adjustment or refund of GST is permitted since no adjustment was made to the consideration for the tour package or air transportation. ... If the contract for the supply of the block of seats to you by the airlines allows for adjustments to consideration if a passenger (to whom XXXXX has sold a tour package or only air transportation) cancels, then the airline may make an adjustment to the GST corresponding to 7% of the adjustment to the consideration. ...

On the other hand, when a contractor who is not acting as agent invoices an owner for reimbursement of an amount, the reimbursement is treated as being part of the consideration for the service supplied by the contractor to the owner. If this service is determined to be a supply of a service that is taxable at seven percent or fifteen percent, as part of the consideration for the service, the reimbursement will also be taxable at seven percent or fifteen percent, as the case may be. ... However, where the contractor is not acting as agent, the consideration for the medical equipment will form part of the consideration for the services provided by the contractor and will be subject to GST/HST in the same manner as the contractor's services. ...

Is the $35,000 paid to the medical clinic consideration for a taxable supply or an exempt supply? ... The $35,000 amount paid to the medical clinic as lease inducement is consideration for the supply of entering into a lease, a taxable supply from the lessee to the lessor. ... The above taxable supply results in the loss of the small supplier status for the medical clinic because the consideration for the supply is more than $30,000. 3. ...

Any additional further consideration, such as Air Transportation Tax collected at the time that the coupons are redeemed, would also be subject to the GST. ... Subsection 168(1) states that GST is payable in respect of a taxable supply on the earlier of the day that consideration for the supply is paid and the day consideration for the supply becomes due. ... However, any additional future consideration for the air transportation services would be subject to the GST. ...

An explanation of the definitions of supply and recipient pursuant to subsection 123(1) of the Act and the value of consideration for a supply pursuant to subsection 153(1) of the Act may provide a useful general framework for these issues. We have already provided XXXXX of your office with comments on a spreadsheet that he had developed for determining value of consideration, tax payable, and rebate amounts where the terms of a contract are such that the price payable for a new house includes the HST with both the GST new housing rebate and the XXXXX new housing rebate credited by the builder. This is a very useful chart and we have forwarded it to our Technical Publications Unit for their consideration. ...

Consideration is paid to the hospital by the NPO. The payment is affected by the hospital, who administers the grant funds. The hospital debits the funds for the amount of the consideration for the supplies. The amount debited equals the consideration paid by the hospital authority net of the 83% GST rebate claimed by the hospital authority. 5. ...

It is the Department's position that a damage payment, to the extent that it is not a payment for a supply of property or a service, is not consideration for a supply even if the payee agrees to release the payor from further liability. ... In the situation you describe, the payments are not consideration for taxable supplies. ... Additionally, the acceptance of the payment does not result in the payment being consideration for a supply, in that it represents compensation for the damage to the telephone companies' equipment. ...

The GST is applied to the consideration paid for taxable goods or services (i.e. taxable "supplies") that are made in Canada, or in some cases, deemed to be made in Canada. ... However, ITCs are available only with respect to purchases that are used to make taxable supplies for consideration. ... Please note that if all of XXXXX supplies are made for no consideration, these supplies are exempt from the GST, and no ITCs can be claimed for purchases related to exempt supplies. ...

The March 25, 1999 ruling letter indicated that the transaction would be subject to the GST, and would be taxable at 7% on the total consideration charged, pursuant to subsection 165(1) of the Excise Tax Act (ETA). 8. Your case, including the file material from case number XXXXX as well as the additional information which you provided in your letter of May 5, 1999, has been forwarded for our review and consideration. Transaction The proposed sale of the XXXXX to an unspecified unrelated person, who does not have the right to expropriate this property, for an unspecified amount of consideration by the following owners as tenants in common (equal in proportion XXXXX[.] ...