Answer to Question #80034 in Finance for Hugh Heron

Question

A business purchases 10 digital televisions for use in its offices. When the televisions arrive at the workplace the owner of the business decides that one will be taken home. The total cost of the acquisition was $16,500 (GST inclusive).

Describe how you would process this to comply with taxation reporting requirements. How much input tax credit could be claimed and why?

Answer-At least 50 words

Answer 1

The Australian Tax Office (ATO) requires businesses to submit a business activity statement (BAS) monthly, quarterly or annually (annual GST return, if eligible).
It is used to report and pay goods and services tax (GST), pay as you go (PAYG) instalments, PAYG withholding tax and other tax obligations.
In this case all 10 televisions should be under taxation, as all of them were bought to be used at the workplace.