Search - consideration

RULING GIVEN Based on the facts set out above, we rule that payments made to the Engineer in respect of the Agreement, including the Royalty Agreement are consideration for a taxable supply made by the Engineer and that section 162 does not apply in respect of the supply. ... EXPLANATION Generally, every recipient of a taxable supply made in Canada shall pay GST/HST calculated on the value of the consideration for the supply. ... Payments made to the Engineer in respect of the Agreement, including the Royalty Agreement, are consideration for a taxable supply of the engineering study in respect of a specific site relating to the evaluation of the site and its potential for the generation of hydroelectric power. ...

The value of the consideration for the supply is deemed to be the amount, if any, by which the value of the consideration for the supply exceeds the discount or exchange value of the coupon. ... When a registrant accepts, in full or partial consideration for a supply of property or a service, a coupon that may be exchanged for the property or service or that entitles the recipient of the supply to a reduction of, or a discount on, the price of the property or service and paragraphs 181(2)(a) to (c) do not apply, the value of the consideration for the supply is deemed to be the amount, if any, by which the value of the consideration for the supply as otherwise determined exceeds the discount or exchange value of the coupon under subsection 181(4) of the ETA. ...

Subsection 141.01(5) of the ETA requires that a person use a fair and reasonable method in order to determine the extent to which properties or services are acquired, imported or brought into a participating province by the person for the purpose of making taxable supplies for consideration or for other purposes, or to determine the extent to which the consumption or use of properties or services is for the purpose of making taxable supplies for consideration or for other purposes. ... The difference is generally funded by grants and subsidies that may be other than consideration. Where a public college or university does use the output based method, the calculation should include any grants or subsidies that the public college or university receives, whether or not the grants or subsidies are consideration for supplies. ...

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. ... Consideration generally means the price paid for a supply of property or service. Where the consideration is expressed in money, the amount of the money is treated as the value of the consideration. ...

The XXXXX deduction from the royalty payments XXXXX pays to XXXXX to cover XXXXX administration and overhead costs, is not consideration for a supply from XXXXX to XXXXX[.] ... The consideration for the supply XXXXX which includes the XXXXX as well as the royalty, is subject to the GST at 7% under Division II of the Excise Tax Act (Act). 2. ... The XXXXX deduction to cover XXXXX administration costs and overhead is a reduction in the consideration for the supply by XXXXX to XXXXX and is not consideration for a supply from XXXXX to XXXXX This ruling is subject to the general limitations and qualifications outlined in Section 1.4 of the GST Memoranda Series. ...

A non-profit organization which makes taxable supplies of property and services is required to register and collect the tax on the value of the consideration charged for its supplies. ... Section 141.01 of the ETA clarifies that a registrant will be entitled to claim an ITC in respect of a purchase only to the extent that it has been acquired for the purpose of making taxable supplies for consideration and not for the purpose of making supplies that are not taxable or for purpose other than the making of supplies. Please note, the term "consideration" does not include "nominal consideration"; consequently supplies for nominal consideration will not be eligible for ITCs. ...

The GST/HST at the rate of 7% is calculated on the value of the consideration for this supply which includes the amount related to the reimbursement of the medical practitioner's charges to XXXXX[.] ... Section 9 of this Part also exempts the supply of goods and services by any person where, and to the extent that, the consideration for the good or service is paid for or reimbursed by a provincial health insurance plan. ... Please note that supplies made by medical practitioners and other practitioners of health care services rendered to individuals will retain their exempt status regardless of who pays for these services, i.e., where the consideration for these services is billed to a third party. ...

As this service is a taxable supply, the consideration paid for this service would be subject to tax at a rate of 7% pursuant to subsection 165(1) of the ETA. ... Therefore, it is our view that the payment is consideration for a supply. ... As the Town does not consume, use or supply the construction service in the course of making a taxable supply for consideration, it would not be eligible for ITCs. ...

On XXXXX, XXXXX transferred these roads (XXXXX) and infrastructure consisting of drainage work and paving to the Municipality for no consideration. 2. ... Pursuant to paragraph 152(1)(c) of the Excise Tax Act (ETA), where a supplier does not issue an invoice, consideration for a taxable supply becomes due on the earliest of the day the recipient is required to pay that consideration to the supplier under an agreement in writing. Therefore, when the Municipality transfers the latecomer fees to XXXXX pursuant to the Agreement, the GST should be collected and remitted by XXXXX as these payments are consideration for its supply of construction services to the Municipality. ...

Consideration for uninsured services may be charged directly to patients at the discretion of the physician. ... Annual or block fees are consideration payable by a patient for the "right" to future services. ... Therefore, the annual or block fee represents consideration for a taxable supply. ...