Answer to Question #122766 in Microeconomics for Sylvia Boli

Question

Q. A business purchases 10 digital televisions for use in its office. When the televisions arrive at the workplace the owner of the business decides that one will be taken home. The total cos of the acquisition was $26,500 (GST Inclusive).Describe how you would process this to comply with taxation reporting requirements. How much input tax credit could be claimed, what would be the BAS code for the Acquisition?

Answer 1

For purchases that you use both for business and private purposes, you can claim a GST credit for the portion you use for business purposes. For example, if 50% of your use of the purchased item is for business purposes, you can claim a credit of 50% of the GST you paid.