Search - 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. ...

Ruling Requested The municipality is providing taxable services for consideration to the province in respect of the MOA between the parties relating to the construction and maintenance of such parts of the freeway that lie within the boundaries of the municipality. ... Therefore, the payment made by the province is not consideration for a supply. ... It is our opinion that the payment made by the province to the municipality is a grant rather than consideration for a supply. ...

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[.] ...

Therefore, unless a tax, duty or fee is "prescribed", the amount is included in determining the value of the consideration. ... The RST that is included in the value of the consideration for the supply and installation of greenhouses is not a prescribed tax for purposes of section 154 of the ETA. The amount of the RST is included in determining the value for consideration and the GST/HST is calculated on the total amount inclusive of the RST. ...

Ruling Given Based on the facts set out above, we rule that the contract service fees and the administration fees payable by the XXXXX to the XXXXX are consideration for an exempt supply pursuant to subparagraph 189(a)(i) of the Excise Tax Act and therefore the XXXXX is not required to collect tax on these fees. ... We are of the view that the amounts paid by the XXXXX in this case represent consideration for that deemed exempt supply to the members, notwithstanding that the amount is paid by the XXXXX. That is to say, pursuant to the collective agreements, the XXXXX have undertaken to pay part of the consideration for services, deemed to be exempt, provided by the union to all its members. ...

Generally, a damage payment is not consideration for a supply, as it is compensatory or punitive in nature, and not given in exchange for a supply of property or services by another party. ... Section 182 provides that the recipient is deemed to have paid an amount as consideration and tax, in respect of the supply provided for in the agreement. ... The effect of the transitional provision is that the recipient is not deemed to have paid tax related to the amount which is deemed to be consideration for the supply and is generally required to pay an additional amount equal to the amount of deemed tax. ...

The co-promotion agreement indicates an amount of monetary consideration is payable by XXXXX to XXXXX based upon the number of coupons redeemed by XXXXX purchasers to obtain XXXXX. 5. ... You have also specifically requested confirmation tha tXXXXX payment to XXXXX is deemed not to be consideration for a supply under paragraph 181(5)(a) and that XXXXX is allowed an input tax credit under paragraph 181(5)(c). ... Therefore, this amount paid to XXXXX under the co-promotion agreement is regarded as consideration for a taxable supply made by XXXXX. ...

In such circumstances the total amount would be regarded as consideration for an exempt supply pursuant to subsection 6(b) of Part I of Schedule V to the Excise Tax Act (the ETA). ... When the unit owners use the units themselves they are receiving a licence back from the management company; the staying charge is part of the consideration for this supply. As the additional charge is related to the supply of the units by way of licence to the owners and is required under the agreement, we would also regard the additional charge as part of the consideration paid for the supply. ...