Goods and Services Tax Advice
GSTA TPP 054W
Goods and services tax: Is B's payment to A consideration for A's supply to B where, under an agreement between A and B:
- A licenses intellectual property to B (who sublicenses it to C) and;
- the amount B pays A is calculated by reference to the extent of B's supply to C?
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Notice of Withdrawal
1. GSTA TPP 054 considered a particular transaction and the associated supplies and the consideration for the supply. The advice explained that a supply is made for consideration when there is a sufficient nexus between that supply and the consideration provided by the recipient.
3. These concepts are explained in Goods and Services Tax Ruling GSTR 2006/9 Goods and services tax ruling: supplies and Goods and Services Tax Ruling GSTR 2001/6 Goods and services tax ruling: non-monetary consideration.
Commissioner of Taxation
2 July 2014
You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
Not previously issued as a draft
in connection with
TAA 1953 Sch 1 Div 358