please follow australian tax rules million, and works under the accrual method of accounting. Bowens Pty Ltd purchases concrete mixer for $660 each from Builder’s Choice Pty Ltd, a company in Geelong with an annual turnover of around $21 million, and works under the accrual method of accounting. Bowens Pty Ltd plans to sell the concrete mixers at a 200% mark-up to its customers. In October last year it purchased 110 concrete mixers but in December they discovered that 12 of the concrete mixers were faulty and subsequently returned these faulty concrete mixers to the manufacturer, obtaining a full refund. Assume both apply the accrual method of accounting. Required: With reference to relevant laws, discuss the GST consequences of this arrangement for both Bowens Pty Ltd and Builder’s Choice Pty Ltd
please follow australian tax rules
million, and works under the accrual method of accounting. Bowens Pty Ltd purchases concrete
mixer for $660 each from Builder’s Choice Pty Ltd, a company in Geelong with an annual turnover of
around $21 million, and works under the accrual method of accounting. Bowens Pty Ltd plans to sell
the concrete mixers at a 200% mark-up to its customers. In October last year it purchased 110 concrete
mixers but in December they discovered that 12 of the concrete mixers were faulty and subsequently
returned these faulty concrete mixers to the manufacturer, obtaining a full refund. Assume both apply
the accrual method of accounting.
Required:
With reference to relevant laws, discuss the GST consequences of this arrangement for both Bowens
Pty Ltd and Builder’s Choice Pty Ltd
If goods are returned by registered recipient, then registered seller will issue a credit note to the buyer. The seller must declare this in his GSTR 1.
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