Should charge GST on quit rent charged to commercial owner by management office

The invoice is billed by developer to management office. After that, management office will bill owner. This is disbursement? As the billed is under the name of management office when developer charged it.

Asked on September 16, 2015 2015-09-16 13:06:00 Business (商家)
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4 Answer(s)

After your elaboration, this is reimbursement.

YES because reimbursement is taxable service.

Quit rent is charge by land office to developer (because still under master title) in a lump sum, then developer will pay it but will collect it back from each unit via management office. For the developer, quit rent is not a supply because it government related fees.

However, the management will allocate the payment by billing each unit to pay for it. Sometime, management might even markup such amount because not all unit will pay for it. So it actually is not “Quit rent” anymore like we usually understand.

 

Nope, this is disbursement and it is not a supply, which mean,

  1. Cannot charge GST on it 
  2. Cannot issue tax invoice
  3. Cannot mark up the amount
Answered on September 17, 2015. 2015-09-17 01:18:08
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But the invoice is billed by developer to mangememt office. After that, mnagement office will bill owner. This is disbursement? As the billed is under the name of management office when developer charged it.

Answered on September 17, 2015. 2015-09-17 05:05:48

Answer is updated.

on September 18, 2015. 2015-09-18 15:02:56
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So, should developer charge gst on quit rent billed to management  office (if there is no mark up of cost)?

Management office should charge owner gst on quit rent (if there is no mark up of cost)?

Thanks

Answered on September 18, 2015. 2015-09-18 15:50:24

Sorry, Im not sure about that, but I think this is a disbursement and developer will not issue tax invoice to management on such cost. It is not management’s liability. Management is just act as agent of developer on this matter.

on September 21, 2015. 2015-09-21 07:11:57
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Ok, thanks for your explanation.

Answered on September 21, 2015. 2015-09-21 13:47:54
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