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Re: GST Gouging

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Newbie

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Replies 3

My project manager has an Invoice, from a retail supplier, for materials that shows the total value of goods to be delivered to my address is $6147.20 (Inc GST) I have that invoice. His Invoice for my payment to him includes $614.72 as an additional GST amount on those goods. He has insisted that he must charge me this second 10%. I think that he is incorrect. Please advise.

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Best answer

Master

Replies 2

If your employer is charging you GST it means they are entitled to claim input tax credits on the purchase.  The net cost to your employer is $5,588 i.e. the $6,147 paid to the supplier less the $559 input tax credit.  

 

Assuming they are wanting to sell to you at cost, they would then invoice you for $5,588 plus GST.

3 REPLIES 3
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Best answer

Master

Replies 2

If your employer is charging you GST it means they are entitled to claim input tax credits on the purchase.  The net cost to your employer is $5,588 i.e. the $6,147 paid to the supplier less the $559 input tax credit.  

 

Assuming they are wanting to sell to you at cost, they would then invoice you for $5,588 plus GST.

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Newbie

Replies 1

methinks you did not get the particulars of my question 

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Master

Replies 0

You are possibly right.

 

From your original message I have assumed the following.

 

A retailer sells something that you want for $6147.20 (Inc GST).  You do not buy it from the retailer but a project manager or a business associated with the project manager does.

 

The project manager wants to charge you $6761.92 (Inc GST) for the same goods.

 

You think the project manager is wanting to charge you two lots of GST.

 

Confirm whether the above is right or wrong and I can then provide you with a better answer.