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Edited version of private advice
Authorisation Number: 1052097870556
Date of advice: 20 April 2023
Ruling
Subject: GST and supplies
The Commissioner was asked to rule whether:
Question 1
Is Entity A making taxable supplies under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 when it makes supplies under the Agreement to Entity B?
Answer
Yes.
Question 2
If yes, is the consideration for these taxable supplies the Contract Price?
Answer
Yes.
Question 3
Does the income earned by Entity A under the agreement, offset against monthly fees, reduce the consideration for Entity A's supplies to Entity B?
Answer
Yes.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 section 9-5
A New Tax System (Goods and Services Tax) Act 1999 section 9-10
A New Tax System (Goods and Services Tax) Act 1999 section 9-15
A New Tax System (Goods and Services Tax) Regulations 2019) section 40-5.09
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