Posted on: 12-07-10 09:35:06
Quote:
Originally posted by web2000
Is there any income limit which exempt u from not charging GST/PST from the customer. I talked to accountant and he said
"If a business has total income less than $30000 in a given taxation year then it is not mandatory to charge GST/PST from the customer. If u do charge then that has to be remitted to the CRA."
Is it true?
Is it so difficult to answer? I could not get clear answer of this query from any where so far.
i think that your accountant is a better person to answer such detailed questions.
Quote:
Originally posted by guptamik
i think that your accountant is a better person to answer such detailed questions.
I know that.
There are professionals in every field and there is no need to ask on this forum and no need for this forum to exist.
I queried it from professionals and seems like they do not know what the rule is. Some of them told that it is up to me if to charge or not charge GST. I am still not sure what they say is correct.
Quote:
Originally posted by web2000
Is there any income limit which exempt u from not charging GST/PST from the customer. I talked to accountant and he said
"If a business has total income less than $30000 in a given taxation year then it is not mandatory to charge GST/PST from the customer. If u do charge then that has to be remitted to the CRA."
Is it true?
IMO, and I am no tax expert, your accountant is half right, half wrong.....
The word is revenue, and NOT income. Revenue can be more that 100K but income zero or negative.
So if your revenue (billings) are more than $30k, you have to be registered for GST, but below that is your choice. Hope I am able to answer your query.
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Chandresh
Advice is free – lessons I charge for!!
Quote:
Originally posted by chandresh
Quote:
Originally posted by web2000
Is there any income limit which exempt u from not charging GST/PST from the customer. I talked to accountant and he said
"If a business has total income less than $30000 in a given taxation year then it is not mandatory to charge GST/PST from the customer. If u do charge then that has to be remitted to the CRA."
Is it true?
IMO, and I am no tax expert, your accountant is half right, half wrong.....
The word is revenue, and NOT income. Revenue can be more that 100K but income zero or negative.
So if your revenue (billings) are more than $30k, you have to be registered for GST, but below that is your choice. Hope I am able to answer your query.
It is revenue (Including expenses) and is under $30000 a year (Total billing).
My question is if I do not charge GST/PST from my customers (Because the total billing is under $30000 a year) then do I have to pay GST/PST from my own pocket. Let us say the total billing was $25000 and after excluding expenses it comes out to be $15000.
Since I did not collect GST so based on 5% rate it comes out to be $1250 (5% of $25000). Will I remit $1250 to CRA on top of income tax on $15000?
My accountant does not know anything about that.
1> GST/PST charging is by adding on top of ur pricing is a choice of the business.
2> If your revenue is below 30K you are not required to collect or pay GST/PST. Once u have started collecting u have no option but to continue collecting.
3> If you have collected GST/PST then u are required to file a GST/PST return and remit the amount.
Having said that for business it is always better and advantageous to collect GST/PST for the following reasons.
a> u get to keep a small percentage of the collect GST/PST
b> If u are not collecting because u are predicting ur revenue will be below 30K , and if it goes over the 30K then u automatically are responsible for remitting GST/HST on the entire revenue even if u had not collected it.
Quote:
Originally posted by web2000
My accountant does not know anything about that.
may be change your accountant
i take a shot in dark ...
if you are incorporated, you are registered - no choice.
if you are doing self-proprietary then you either do it or dont do it (your choice). No mater what the revenue, I think what CRA tells you is that you report back your GST/PST collections if revenue is more than 30k. CRA is not telling you to not collect GST/PST just because you dont expect to get over 30k mark.
When you make your first sell in January, you don't know if you are going to meet 30k mark or no - so you start collecting right from first sell.
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