But most companies have millions of revenue turnover every
years, so if you are driving for them, you are representing them in
a way, and moreover, they are charging you GST for the rental, so
how come you, (some wearing CDG shirt somemore) in the
capacity of cdg, TC or any other companies cannot charge the
pax to defray the GST?
Hawker rent stall from town council, no GST leh, so they
can sell without GST, you rent or lent out a room also no charge
GST mah, so how come TD have to aborb the GST, and as rental of
taxis get higher, GST certainly goes higher?
Just a food for thought
GST suppose to work in a loop, is neither a profit to a
merchants nor consumers........
Simple layman term, CDG charge 7% GST on taxi rental to TD
because they are GST registered, if TD is GST registered also which
sound impossible, of course they could claim back the GST, but is
impossible, just like as a consumers we buy things or eat at
restaurant, also cannot claim back right? So TD classify as
consumers........
CDG is a merchant, they import goods like accessory,
vehicle....etc, so they could claim back GST by submitting to iras
to complete the loop, as for the GST collected from taxi rental,
they had to declare back to the iras.........
It may sound complicated, that's why small enterprise usually
don't registered GST, because very lay chek........
This is what I learn from school.......
"It is compulsory for businesses to come
forward to register for GST when their taxable turnover
exceeds $1mil per year. Businesses that do not exceed $1mil in
taxable turnover may register for GST
voluntarily.
After registration, businesses must charge GST at the prevailing
rate. This GST that they charge and collect is known as output
tax, which has to be paid to IRAS. GST incurred on business
purchases and expenses (including import of goods) are known
as input tax. Businesses can claim input tax if conditions for
claiming are satisfied. This credit mechanism ensures that
only the value added is taxed at each stage of a supply chain."
