Activity 161A supplier carrying on an enterprise invoices the business for $200. The invoice does...

Question

Activity 161A supplier carrying on an enterprise invoices the business for $200. The invoice does not contain an ABN. Upon request by the business to the supplier for an ABN, the supplier after 28 days fails to provide it. What are the requirements? 160 words2.The supplier having received a payment for less than the amount for which they supplied an invoice contacts the business and provides an ABN. How should the business now deal with this? 30–40 words3The 17-year-old son of an employee has been doing handyman work for the business for a period during the school vacation. He has supplied an invoice for $115.00 for the work he has completed. He is not registered for nor has he charged GST. Is there a withholding requirement? 35 words44. There is what appears to be a legitimate tax invoice provided for a supply but it has been brought to the bookkeeper’s attention because one of the employees heard something which made them doubt the veracity of the supplier. They think that the supplier is not registered for GST. What should you do and why? 80 words5. What is PAYG? 100 words

Sumit · Accepted Answer

1. 
When a buyer purchases any goods from the seller the seller needs to quote the Australian Business Number (ABN) on the invoice for the goods or services that are being supplied. The buyer should first request the seller to provide the Australian Business Number (ABN). If the supplier does not provide his Australian Business Number (ABN), then the buyer should withhold some amount from the total payment to be made to the seller. The amount to withhold is the based on the top rate of tax and the remaining payment can be made to the supplier.
Since the Invoice value in the transaction is greater than $75 (excluding GST), the withholding of tax till the Australian Business Number (ABN) is provided is applicable. Hence the buyer should withhold the amount of GST calculated using the Highest Tax Rate and make the remaining payment. The amount of deduction to be made is 46.50% of the invoice amount, i.e., $93.

Activity 16 1 A supplier carrying on an enterprise invoices the business for $200. The invoice does not contain an ABN. Upon request by the business to the supplier for an ABN, the supplier after 28...

Activity 16

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment