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When I was reading the example 3 from the below link, I wasn't sure how it works for the supplier (i.e., ABC Company Pty Ltd).
ABC Company Pty Ltd (Supplier)
New residential property Sale
Proceeds : $550,000
GST Property Witholding amount : $550,000/11 = $50,000
I am just wondering how this transaction should be recorded in the books of ABC and reported on their BAS return.
Bank Dr $500,000 (Actual cash received would be $500k only as James withheld GST of $50k and paid to ATO)
Sales Cr $550,000?
GST Property Credit (Current Asset) Dr $50,000? (Separate account to establish?)
In BAS return, for this transaction only :
1A : 0?
It is a bit confusing for me. If someone can share your thought, it would be greatly appreciated.
Record it on the BAS as per normal (incl $50k in 1A). The ATO will magically know that the $50k was withheld from your sale proceeds and offset it
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