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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of your written advice

Authorisation Number: 1012695377456

Ruling

Subject: GST and consideration for supplies

The Commissioner has ruled on each of the following questions.

1. Is the First Payment payable by Entity A to Entity B under the terms of the Project Agreement consideration for the taxable supply of the Services made by Entity B to Entity A?

2. In what tax period is the input tax credit in respect of the acquisition of the Services from Entity B under the Project Agreement, for which the First Payment is consideration, attributable to?

3. Is the Purchase Price payable by Entity A to Entity C under the terms of the Receivables Re-purchase Agreement consideration for an input taxed financial supply of the assignment of the Receivable to Entity A?

4. Is the Second Payment payable by Entity A to Entity B under the terms of the Project Agreement consideration for a taxable supply?

Answers

    1. Yes

    2. The input tax credit in respect of Entity A's acquisition of the Services from Entity B is attributable to the tax period in which the First Payment is made, or the tax period in which an invoice relating to the acquisition is issued if the invoice is issued before the First Payment is made.

    3. Yes

    4. Yes

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 paragraph 9-15(1)(b)

A New Tax System (Goods and Services Tax) Act 1999 subsection 11-5(b)

A New Tax System (Goods and Services Tax) Act 1999 paragraph 29-10(1)(a)

A New Tax System (Goods and Services Tax) Act 1999 section 40-5


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