Need help to pass my assignment question ( URGENT) ( Tax Code)

Can anyone help me to solves the following description according to Tax Code (release on March 2017)

Description (Purchase)
1. Legal fee paid for loan borrowing
2. International school fee for Director’s child
3. Donate 10 units computer to Chinese high school
4. Provision of hostel to employees
5. Purchase of reload coupon
6. Foreign exchange loss (realised)
7. Repair and maintenance of motorcycle
8. Compensation paid
9. Advertisement via Facebook

Description (Supply)
1. Interest income from financial institution
2. Sales of agricultural land
3. Interest charge to customer due to late payment
4. Fixed deposit interest
5. Sales of prepaid card at face value
6. Supplies of lab equipment to private local university
7. Food and beverage supplies by school canteen
8. Training conducted by the educational institutions

Asked on March 8, 2018 2018-03-08 16:32:53 Consumer (消费者)
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2 Answer(s)

 

Free accommodation is not a supply.  Tax code is OP (if the landlord or supplier is a GST registered person) and NR (if the landlord or supplier is a non-GST registered person)

Compensation is not subjected to GST as there is no supply made.  Tax code is OP

Answered on March 10, 2018. 2018-03-10 02:05:13
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There is an up-dated version set out by Customs as at 5 February, 2018.  But since you want the 2 March, 2017 version, below are the answers :

Description (Purchase)

  1. Legal fee paid for loan borrowing – Tax code is TX (for expenses in the course or for the furtherance of business) or OP (for out-of-scope expenses).
  2. International school fee for Director’s child – Tax code is OP.
  3. Donate 10 units computer to Chinese high school – Tax code is TX.
  4. Provision of hostel to employees – Do you mean the rental or the expenses incurred?
  5. Purchase of reload coupon – Tax code is TX.
  6. Foreign exchange loss (realised) – Tax code is TX-IES.
  7. Repair and maintenance of motorcycle – Tax code is TX (if the supplier is a GST registered person), NR (if the supplier is a non-GST registered person).
  8. Compensation paid – What type of compensation is it related to?
  9. Advertisement via Facebook – Tax code is TX.

Description (Supply)

  1. Interest income from financial institution – Tax code is ES (for exempt supplies trader) or IES (for mixed supplies trader).
  2. Sales of agricultural land – Tax code is ES.
  3. Interest charge to customer due to late payment – Tax code is IES.
  4. Fixed deposit interest – Tax code is IES.
  5. Sales of prepaid card at face value – Tax code is SR.
  6. Supplies of lab equipment to private local university – Tax code is SR.
  7. Food and beverage supplies by school canteen – Tax code is ES.
  8. Training conducted by the educational institutions – Tax code is ES.
Answered on March 9, 2018. 2018-03-09 08:57:33

Hi CMS,

First of all I would like to thank you and I do  appreciate for your answer given.

Is there any difference on Tax Code for provision of hostel to employees on rental and expenses incurred ?

For Compensation paid, question given do not mention on which type, but which is the most commonly Tax Code to use under compensation paid ?

Do advice me on this.

on March 9, 2018. 2018-03-09 15:30:49
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