Search - consideration

Under section 10.01 of the Lease Agreement, in consideration for the sum of $XXXXX and other good and valuable consideration paid by the Association to the City, the City granted the Association the Option to purchase the Property under the following terms: • the Association could exercise the Option at any time during the XXXXX-year term, and • the Association had to provide written notice to the City of its intention to exercise the Option. ... Explanation The coming into force provisions for the relevant legislative changes to section 25 of Part VI of Schedule V XXXXX provide, relative to this case, that the amendments to section 25 apply to any supply for which consideration becomes due after March 9, 2004, or is paid after that date without becoming due, but do not apply to a sale made under an agreement entered into before March 10, 2004. ...

Explanation Generally, every recipient of a taxable supply made in Canada shall pay tax calculated at the rate of 5% on the value of the consideration for the supply (or 13% in the participating provinces of Nova Scotia, New Brunswick, and Newfoundland and Labrador) unless the supply is zero-rated. ... Consideration was given that the Product may be yoghurt, as yoghurt supplied in all sizes of servings is generally zero-rated for purposes of section 1 of Part III of Schedule VI, unless there are other exclusions in paragraphs 1(a) to (r) that apply. ... Consideration was given to the Product being included in "other products similar to pudding". ...

GST applies on the total amount of the consideration payable for the electricity before the XXXXX% financial incentive is applied. 2. ... Explanation Although not asked in your request for a ruling, we would like to point out that XXXXX is required to collect GST from XXXXX on the consideration payable for its taxable supplies made to XXXXX under the Program. This consideration includes the management fees, bonus payments, and the reimbursed costs, other than the financial incentives. ...

As your supplies are made in Ontario, the consideration charged for your supplies is subject to the HST at the rate of 13%. ... Explanation When there is an agreement to provide specific goods and services in exchange for money, the money constitutes consideration for a supply unless the agreement could be classified as a contract for employment. ... If a service is not included in the list of exemptions, then the supply of the service is taxable and the result is that the value of the consideration charged for the supply is subject to the GST/HST. ...

Clients (occasionally including those in Canada) enter into licensing agreements with the Company whereby consideration is paid (license fees) for the right to XXXXX. ... Ruling Requested You would like to know whether the GST/HST is exigible on the consideration for the supply of intangible personal property under the licensing agreements made by the unregistered Company.. ... As set out in the enclosed GST/HST Policy Statement P-051R2: Carrying on Business in Canada, whether a non-resident is carrying on business in Canada for GST/HST purposes is a question that requires consideration of all relevant facts. ...

With respect to the discount amounts deducted from monies owed by XXXXX to its suppliers, you would like confirmation that the amounts deducted to promote the supplier's products are promotional allowances for purposes of section 232.1 of the ETA and hence the amounts are not consideration for a supply made by XXXXX to the suppliers. Ruling Given Based on the facts set out above, we rule that in each of the three outlined scenarios, the GST/HST applies on the consideration for the supply, net of the discounts, i.e, after the discounts are deducted from the price of the relevant goods. With respect to the discount amounts deducted by XXXXX from amounts owed by XXXXX to its suppliers, the payments as described in the facts relating to the temporary price discounts represent amounts paid for promotional allowances for purposes of section 232.1 of the ETA and hence are not consideration for a supply made by XXXXX to the suppliers. ...

Under the provisions of section 6 of Part VI of Schedule V to the ETA, a supply of a service purchased by a public service body (which includes a non-profit organization such as XXXXX) for the purpose of making a supply by way of sale of the service is exempt from GST or HST where the total charge for the supply is the usual charge by the public service body for such supplies to such recipients and: •   if the public service body does not charge the recipient the GST/HST in respect of the supply, the total charge for the supply does not, and could not reasonably be expected to, exceed the direct cost of the supply; and •   if the public service body charges the recipient GST/HST in respect of the supply, the consideration for the supply does not, and could not reasonably be expected to, equal or exceed the direct cost of the supply determined without reference to GST/HST and, for Quebec Sales Tax (QST) registrants, the QST. For example, if XXXXX does not charge GST on the resupply of the legal services to XXXXX, and the consideration is equal to or less than $XXXXX, then the resupply is exempt pursuant to section 6 of Part VI of Schedule V to the ETA and XXXXX will not be eligible claim an ITC. If XXXXX does charge the GST to XXXXX on the resupply of the legal services and the consideration is equal to or more than $XXXXX, the resupply is taxable. ...

In our view, where a person receives a stock option enabling the person to purchase shares for an amount less than the fair market value of the shares as part of the compensation paid to him or her by the corporation for taxable services provided (or to be provided) to the corporation, the CRA will consider the difference between the purchase price of the shares under the option and the fair market value of the shares at the time of the granting of the option to be additional consideration for the contractor's services to the corporation. ... In the event that this is the case, your client, a GST/HST registrant, will be required to collect and remit an amount of the GST/HST on this amount of "additional consideration" for taxable services supplied to the corporation. Where the stock option price of the shares was equal to the fair market value of the shares at the time the options were granted, or your client received the stock options otherwise than as additional consideration for services provided to the XXXXX company, the granting of the stock options has no GST/HST implications. ...

Interpretation Given Every recipient of a taxable supply, other than a zero-rated supply (taxable at 0%), made in Canada is required to pay GST at the rate of 7% on the value of the consideration for the supply. ... As such, the amount of the promotional allowance is not consideration for a supply made by the retailer to the supplier. ... In other words, the GST/HST applies on the value of the consideration for the supply made by the retailer i.e., the reduced selling price. ...

Explanation Every recipient of a taxable supply made in Canada is required to pay tax in respect of the supply on the value of the consideration for the supply. ... As a result, the assessments are consideration for the supply of the membership. There is no consideration for the supply of a XXXXX membership. The supply of a membership by a non-profit organization is an exempt supply where certain conditions exist. ...