Rework on goods subject to GST?

A buy some goods from B vendor but the few of the goods is not functioning thus rework is done by A itself. Therefore, A will charge back the cost to B vendor.

A. Is this charge back to B subject to GST?

  1. B is local vendor
  2. B is foreign vendor

B. What tax code to use for this trancsaction when capture in system?

Asked on August 26, 2015 2015-08-26 01:49:18 Business (商家)
Add Comment
1 Answer(s)

This is kind like a compensation (Reimbursement).

Under the DG decision 5, reimbursement is a supply. In this case, the supply is the service of the rework, it will be incurred GST on this, no matter B is local or foreign vendor as the service is done locally. The tax code should be SR.

Answered on August 26, 2015. 2015-08-26 12:39:12
Add Comment

Your Answer

By posting your answer, you agree to the privacy policy and terms of service.