Search - consideration

Interpretation Given Paragraph 154(2)(b) provides that the consideration for a supply of property or a service includes "any provincial levy payable by the recipient, or payable or collectible by the supplier, in respect of that supply, or in respect of the consumption or use of the property or service, other than a prescribed provincial levy that is payable by the recipient. ... 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/HST. ... By virtue of paragraph 154(2)(b), the prescribed provincial levy payable by the recipient would not be included in the consideration for the supply of the XXXXX. ...

Consequently, if a medical practitioner or practitioner (as defined in section 1 of Part II of Schedule V to the Act) order such diagnostic services, the consideration charged for the testing procedures is exempt of the GST/HST pursuant to section 10 of Part II of Schedule V to the ETA. For example, if the medical review officer (MRO) orders a laboratory, radiological or other diagnostic test for an individual, the consideration for the supply of this service is exempt whether billed to an individual patient, XXXXX or other entity. ... Consequently, consideration for such services do not meet the exempting provision of section 10 of Part II of Schedule V to the ETA and are therefore taxable. ...

XXXXX agrees to pay the City on the Lease Commencement Date the sum of $ XXXXX in consideration for the licences to acquire from the City all of its right, title, interest in and to such raw water from the XXXXX as XXXXX may require for the facility and an exclusive license to sell finished water from the facility exclusively to XXXXX to be delivered at XXXXX period commencing on the Lease Commencement Date and ending on the Reversion Date. 6. ... XXXXX will be able to claim and receive a rebate equal to 57.14% of any GST and/or HST charged to and or paid by them on the consideration charged for property or services acquired in respect of their operation of the facility and Pumping Station and its subsequent sale of potable water to the City. 3. ... XXXXX is making a taxable supply of real property to the XXXXX where the consideration for the supply is $ XXXXX subject to adjustments resulting from project risk events or change orders. ...

Transaction The XXXXX proposes to lease real property, as described above, to the XXXXX for no consideration. ... Although the XXXXX provision of real property by way of lease to the XXXXX is a taxable supply under the Excise Tax Act, it is not required to collect GST as it is made for no consideration. ... As the XXXXX is making a supply of real property by way of lease for no consideration, no GST applies. ...

XXXXX is therefore required to collect and remit to Her Majesty in right of Canada tax at the rate of 7% on the value of the entire consideration (subsection 165(1)). Explanation Taxable supplies of tangible personal property made by a registrant in Canada pursuant to paragraph 142(1)(a) of the ETA are subject to GST/HST at the rate of 7% on the value of the consideration if this property is delivered in a non-participating province (subsection 165(1)). ... Goods such as a XXXXX which are delivered or made available in a participating province, to the extent that they are taxable supplies (which are not zero-rated), are subject to the HST, and tax must be collected on the consideration for these supplies at the harmonized rate. ...

Explanation Subsection 165(1) of the ETA provides that, "Subject to this Part, every recipient of a taxable supply made in Canada shall pay... tax in respect of the supply calculated at the rate of 7% on the value of the consideration for the supply. ... Subsection 162(2) of the ETA provides a specific exclusion in that a supply of a right to explore for or exploit a mineral deposit,... or fishery resource is deemed not to be a supply and any consideration paid or due, or any fee or royalty charged or reserved, in respect of the right shall be deemed not to be consideration for the right, with the result that no GST is exigible. ...

5 September 2000 GST/HST Ruling HQR30466- Application of GST/HST to Contribution Received from the Unedited CRA Tags ETA 123(1) consideration Excise and GST/HST Rulings Directorate Place de Ville, Tower A, 15th Floor 320 Queen Street Ottawa, ON K1A 0L5XXXXX XXXXX XXXXX XXXXXXXXXX Case: HQR30466September 5, 2000 Subject: GST/HST APPLICATION RULING Application of GST/HST to Contribution received from the XXXXX Dear XXXXX: Thank you for your letter of March 8, 2000 (with attachments), concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to funds received by XXXXX XXXXX from the XXXXX. ... Ruling Given Based on the facts set out above, we rule that amounts paid by XXXXX to the Firm are grants that are not consideration for a supply. ... Bonnah Legislative References: s. 123(1), definition of "consideration" and "supply" NCS Subject Code(s): R-11735-5, 11846-3 ...

It has not been collecting GST on the consideration payable for the guest suites. ... Ruling Requested The Condo Corporation requests a ruling as to whether it is required to charge GST on the consideration payable for the supply of guest suites. ... Since the Condo Corporation is not a small supplier, it is required to register and to collect and remit the GST on the consideration payable by unit owners for the supply of guest suites. ...

., a one time administration fee of 10% of the cost of the contract), whether it is pursuant to the applicable provincial legislation or the terms of the contract itself, is part of the consideration payable for the services provided by the funeral home. ... For purposes of prepaid funeral arrangements, potential tax money held in trust is not considered tax paid or payable until the time it is withdrawn from the trust account or when consideration for the funeral services provided under the arrangement becomes due. ... The GST/HST is payable to the funeral home when the consideration for the funeral services provided under the arrangement becomes due. ...

Transaction The XXXXX provides mortgage insurance on the risks associated with the potential non-payment by debtors of sums due to insured financial institutions, and receives an application fee as consideration for reviewing and evaluating the risks associated with mortgage applications and related properties. Ruling Requested Whether the GST is payable on application fees received by the XXXXX as consideration for reviewing and evaluating mortgage applications and related properties. Ruling Given Based on the facts set out above, we rule that: The application fee received by the XXXXX represents consideration for an exempt supply of a "financial service" as referred to in section 1 of Part VII of Schedule V to the Excise Tax Act (ETA). ...