I am inquiring regarding GST treatment for the following proposed transaction/s:
a. Licensor had operated a business of supplying fitted out transportable buildings for use on residential premises as residences;
b. The Licensee has agreed to license that business from the Licensor for payment of a License Fee;
c. Ownership of existing transportable buildings and the business remain with the Licensor. Payment of the License Fee does not constitute the purchase of the business of the Licensor.
d. No GST is paid on the rental of the buildings by the business in accordance with GST 2012/5.
In the circumstances:
1. Is GST applicable to the License Fee?
2. If so, is the Licensee entitled to a credit for GST paid or is it part of the input taxed supply of transportable buildings?
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