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Edited version of private ruling
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Ruling
Subject: Goods and Services Tax (GST) - leasing of land
The Commissioner of Taxation was asked to rule on the following questions.
Question 1
Does an entity (entity 1) make a taxable supply to another entity (entity 2) under the leasing agreement?
Question 2
Does entity 1 make a taxable supply to entity 2 under the construction agreement?
Question 3
Is entity 1 entitled to claim input tax credits on constructions costs relating to the construction agreement?
Question 4
Does Division 129 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) operate to adjust any input tax credits which may be claimed by entity 1 relating to construction costs subject to this ruling application?
The Commissioner ruled that:
Answer 1
Yes, entity 1 makes a taxable supply to the entity 2 under the leasing agreement.
Answer 2
No, entity 1 does not make a taxable supply to the entity 2 under the construction agreement.
Answer 3
Yes, entity 1 is entitled to claim input tax credits on constructions costs relating to the construction agreement
Answer 4
No, Division 129 of the GST Act doesn't apply in this case in relation to any input tax credits that relate to the construction costs.