Why GST on condo sinking fund?
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Why GST on condo sinking fund?
hmm.......interesting.
I OWN a property and receive monthly billing from the property management corporation for the following:
Management fund;
Sinking fund; and
GST on the sum total of management fund and sinking fund.
My interpretation of sinking fund is a fund deposited into the management corporation account for future 'large amount expenses' which have been decided and approved in the property annual general meeting.
Therefore, my question is this: Is GST applicable to this deposit held in trust by the management corporation, as the money has not been spent?
At a future date when the management corporation spends the sinking fund to fix certain items, a contractor will be chosen and then the cost to be paid by the management corporation to the contractor will certainly be charged GST.
This issue has probably missed the attention of many property owners. Therefore, an answer from the authorities is greatly appreciated.
Au Yong How Kai
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If they could tax you for the air you breathe, they would.
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GST is not payable on sinking fund or deposit collected for any purpose. That is the current law.Originally posted by Lin Yu:hmm.......interesting. -
like this tax doubleOriginally posted by robertteh:GST is not payable on sinking fund or deposit collected for any purpose. That is the current law. -
No there is no GST on sinking fund or deposit collected in any business. If any managing agent does not understand this current law then he should not be in business.Originally posted by t_a_s:like this tax double -
prolly taken this money for investing in their own company shares.
Talk to the condo management, or your councils in your condo, to do something about it. -
i wonder which template will be used.
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+ 2 more letters...
http://www.sgforums.com/?action=thread_display&thread_id=285059
The deeper the prejudice, the more difficult the reply... -
suppose in 2 years time, when GST becomes 10% and the money was spent for the condo maintenance then, would the management pay 7% or 3% more or 10%?
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No double payment of GST by condo owners
anybody make sense what she's trying to say?
I REFER to the letters, 'Why GST on condo sinking fund?' (ST, Oct
and 'GST on management, sinking funds inequitable' (ST, Oct 11).
The Goods and Services Tax (GST) is chargeable on supply of goods and services, i.e., anything done for a consideration.
GST-registered persons have to charge and account for GST at the earliest happening of one of three events, viz., when the service is provided, or when the payment is received or when the tax invoice is issued.
Take, for example, the payment to a GST-registered person for a year's pest-control services, to be undertaken once a quarter and with extermination services to be performed upon discovery of significant pest problems. GST is charged and payable on the entire payment even though the pest-control service is not to be done immediately and no extermination service may eventually be undertaken.
A management corporation (MC) is a body corporate set up to provide the services of controlling and maintaining the common property and for which it levies a contribution. The services are non-specific and performed continually.
The MC decides on how best to perform the services, be it through regular inspection and maintenance, ad hoc repairs of carparks, lifts and club facilities, etc, one-time major repairs, or extension of facilities such as the building of covered shelters.
The MC collects fees for the whole range of non-specific services. GST has to be charged on the fees collected, regardless of when and how it chooses to perform its services.
There is no double payment of GST by the owners arising from the MC engaging a contractor to perform repair works.The latter is a separate transaction between the MC and the contractor. The GST-registered contractor charges the MC for his services, including GST. The MC disburses the payments for those services, including GST, from its funds, and then claims the GST incurred from the Inland Revenue Authority of Singapore (Iras) as its input tax.
For more information on GST on MC's contribution, please refer to the Iras website.
Yvonne Yim Seon Young (Ms)
Principal Corporate Communications Officer
Inland Revenue Authority -
but the mcst collected GST from me for so many years already. how to claim back?Originally posted by robertteh:No there is no GST on sinking fund or deposit collected in any business. If any managing agent does not understand this current law then he should not be in business. -
Obfuscate.Originally posted by Lin Yu:anybody make sense what she's trying to say?