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Junior Member
Group: Forum Members
Last Login: 27/03/2008 8:34:26 PM
Posts: 6,
Visits: 253
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Whilst still experimenting within the MySF "Sample Fund", I entered the purchace of an office cabinet $349 against the "5150 General Expenses" account with GST-NC, as my fund is NOT registered for GST. When I print out the "Account Ledger Details" the purchase is reported against "5150 General Expenses" as $317.27 and against "5155 GST Expense" $31.73, is this correct for a fund NOT registered for GST?
Other expense entries in the "Sample Fund" is not shown with a GST Expense account, do I from this assume that the "Sample Fund" IS registered for GST.
Follow on questions, does anyone know if the TAX department would allow this $349 purchase as a one off deduction or would it have to be included in depreciable assets, and similar with the purchace of the MySF software.
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MySF Administrator
Group: Administrators
Last Login: 16/05/2012 7:43:33 PM
Posts: 213,
Visits: 978
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If your Fund is not registered for GST then this is defined at the Fund Definition level.
In the MySF Sample Fund from the drop down menu select System Setup>Fund Definition. In the screen you will see the that the MySF Sample Fund is setup with the box ticked for Is the Fund Registered for GST?
You can change this and then save this away. When you enter a Cash Payment transaction now in the sample fund the GST box will only have GST-NC (GST-Non Claimable).
You have a choice of using GST-NC or just using None and entering the full amount against the expense account.
What you have described for the transaction is correct.
If you buy an item and you are not registered for GST then the GST that you actually paid is expensed.
The exception to this would be if you buy an asset for say $2200 which includes $200 for GST - Then this should be capitalized as part of the asset purchase.
The question of what can you deduct can be found by reference to the ATO guideline. The answer to your question is on page 9 of the the document
http://www.ato.gov.au/content/downloads/NAT1996-05.pdf
I hope this helps
Let us know if you need any more.
Regards
MySF
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