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A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 129.40 Working out whether you have an adjustment

A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 129.40

Working out whether you have an adjustment

  (1)   This is how to work out whether you have an * increasing adjustment or a * decreasing adjustment under this Division, for an * adjustment period, for an acquisition or importation:

Method statement

Step 1.   Work out the extent (if any) to which you have * applied the thing acquired or imported for a * creditable purpose during the period of time:

  (a)   starting when you acquired or imported the thing; and

  (b)   ending at the end of the * adjustment period.

  This is the actual application of the thing .

Step 2.   Work out:

  (a)   if you have not previously had an * adjustment under this Division for the acquisition or importation--the extent (if any) to which you acquired or imported the thing for a * creditable purpose; or

  (b)   if you have previously had an * adjustment under this Division for the acquisition or importation--the * actual application of the thing in respect of the last adjustment.

  This is the intended or former application of the thing .

Step 3.   If the * actual application of the thing is less than its * intended or former application, you have an increasing adjustment , for the * adjustment period, for the acquisition or importation.

Step 4.   If the * actual application of the thing is greater than its * intended or former application, you have a decreasing adjustment , for the * adjustment period, for the acquisition or importation.

Step 5.   If the * actual application of the thing is the same as its * intended or former application, you have neither an increasing adjustment nor a decreasing adjustment, for the * adjustment period, for the acquisition or importation.

  (2)   * Actual applications and * intended or former applications are to be expressed as percentages.

  (3)   If the thing is acquired through a * reduced credit acquisition and, at the time of the acquisition, it was wholly for a * creditable purpose because of Division   70, the extent to which it was acquired for a creditable purpose is the reduced input tax credit percentage prescribed for the purposes of subsection   70 - 5(2) for an acquisition of that kind.

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