Pls do not handwritten for easy reading
Question:-
Goodlife Pte Ltd(Good Life) has been carrying on a business in
Singapore of selling health supplements from Australia since 1 Feb
2014. It obtained its Goods and Services Tax (GST) registration on
1 July 2015. For the quarter ended 30 Sep 2018, its carried out the
transactions listed in (a) through (d) below. All amounts are
exclusive of GST, unless otherwise stated.
For each of the following transactions, explain the GST
treatment from the perspective of Good Life Pte Ltd and, where
applicable, compute the amount of input or output GST for the
quarter ended 30 Sep 2018. In relation to output tax implications,
please identify the place of supply and the basis of your answer in
addition to identifying the type of supply made. In respect of
input tax implications, please identify the type of supply and
whether input tax credit is available, stating the basis for your
answer.
(a) Good life has a few retail outlets throughout Singapore.
Customers from Malaysia came to Good Life's Singapore outlets and
places orders worth $45,000. They requested that Good life arranges
for the goods purchased to be couriered to their Malaysian
residence. Alternatively, the Malaysian customers can take the
goods home themselves.
(b) Good Life imported health supplements from Austalia at a cost
of $60,000, excluding freight and insurance of $5000. Staff of Good
Life had to attend a course conducted by the Australian supplier
via Skype. The course was to educate distributors on the health
benefits of the latest batch of supplements. The Australian
supplier billed Good Life $2,000 for the course and $65,000 for the
health supplements sold to Good life.
(c) Good Life owns a residential property in Singapore, which is
leased to a foreigner working in Singapore at a monthly rental of
$3000. The property is fully furnished and includes movable
furniture. The annual value of the property is $24,000.During the
quarter, Good Life had to incur $5000 to repair a water leakage in
the master bathroom. The repair works were carried out by a GST
registered company.
(d) Paid $10,000 to Gst registered supplier for 2 new Mac book and
accessories. One of the MacBook is used by the sales and marketing
team for official work while the other was given away to staff
members as rewards for excellent performance
a | Place of Supply-Singapore | |||
Ownership of Goods is transfer in singapore, goods physically located in singapore | ||||
Output GST= | $45000*7% | 3150 | ||
b.1 | For Goods | |||
GST is chargeable on all imported goods, regardless of whether the importer is GSTregistered or not | ||||
GST charge on value of Import and value of import is CIF(cost,insurance and freight) | ||||
Cost of goods | 60000 | |||
Insurance and freight | 5000 | |||
CIF value | 65000 | |||
Custome duty(Assume Zero) | 0 | |||
Value of import | 65000 | |||
Output GST @7% | 4550 | |||
b.2 | Import of service is not taxable in Singapore GST |
c.1, For residential property which is used as home office (for example, Small Office Home Office2 ), the taxability of the property will depend on the approved use of the building granted by the relevant authorities. If the building is approved for “residential use”, the sale and lease of the property will be exempt. However, if the building is approved for non-residential use such as “office use”, the sale and lease of the property will be taxable.
Hence we assume approved for " Residential use"
c.2.The input tax claimable includes the GST incurred on the purchase price, rental, maintenance or service charges, purchase of furniture and fittings, renovation and repairs, conveyance fees, etc
Input Tax= 5000*7%=350
d.. Claim Input Tax on both
for staff- Gifts for free (for example, to your customer or your staff), You can claim the GST incurred on the gifts as input tax, provided that all the conditions for claiming input tax are met.
Pls do not handwritten for easy reading Question:- Goodlife Pte Ltd(Good Life) has been carrying on...
Good Life Pte Ltd (Good Life) has been carrying on a business in Singapore of selling health supplements from Australia since 1 February 2014. It obtained its Goods and Services Tax (GST) registration on 1 July 2015. For the quarter ended 30 September 2018, it carried out the transactions listed in (a) through (d) below. All amounts are exclusive of GST, unless otherwise stated. For each of the following transactions, explain the GST treatment from the perspective of Good Life...
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