ARNOLD PARBHU BCA, CA
Consultant
We are delighted to welcome Arnold Parbhu who has joined the Active Team as a Consultant.
Arnold is a qualified Chartered Accountant with over 20 years of corporate and accounting practice experience. He has specialist expertise in tax planning & advice, trust, business planning & structures & valuations.
Arnold says he enjoys assisting clients minimising their tax & helping their businesses grow & providing practical solutions.
Arnold is married with two children & lives in the Hutt Valley.
PROVISIONAL TAX
For those of you who file 6 monthly GST Returns, your Provisional Tax is
due on 28/10/10. If you think you may have tax to pay & haven't had notification from us, or are unsure if you need to make a tax payment, please contact the office as soon as possible.
CLIENT SEMINARS
We are holding seminars for Active clients. Due to the popularity of the last breakfast seminar we held in Paraparaumu we're going to do the same again. Thanks to Scott, the Franchisee of McDonalds Lower Hutt, we're going to hold one seminar in their smart new restaurant & thanks to Andre & Leoni we will be having another one at the Paraparaumu store.
Come along for Breakfast & Coffee on:
Tuesday 23rd November, McDonalds Paraparaumu, 7:00am
Wednesday 24th November, McDonalds Lower Hutt, 7:00am
Mark the date in your diaries and we'll send out further details closer to the time.
POINTS TO REMEMBER WHEN COMPLETING YOUR GST RETURNS
Active have some simple pointers and reminders to help you get it right.
GST returns ending 30 September 2010 –Payment/Hybrid basis
If you are registered for GST on a payments or hybrid basis you will need to record and calculate a GST rate change adjustment (GST 105 form) for your GST return period ended 30 September 2010.
The adjustment takes into account all of your sales and purchases that have occurred before 1 October 2010 but where payment is yet to be made or received. An adjustment is required because in later return periods when a payment is received or made those payment must be accounted for at a GST rate of 15% even though GST at 12.5% was charged on those sales or purchases. The adjustment in the return period ended 30 September 2010 will ensure that the amount that would be subsequently overpaid or over claimed for GST at a later date is dealt with by way of an adjustment in one GST period.
You will therefore need to work out the total value of your debtors/accounts receivable, unbanked sales and creditors/accounts payable as at 30 September 2010. Work out the difference between your debtors and creditors and divide the difference by 51.75 (change in GST rate from 12.5% to 15%).
If you miss some transactions at 12.5% in your adjustment calculation don’t worry you can make the adjustment in latter returns if need be.
For more information or assistance with preparing your GST return/adjustments contact the team at Active.
Transitional GST return
If your GST return period spans 30 September 2010 then you will need to complete a special 2 part GST return (call a transitional return). In the first part, (the period upto 30 September 2010) transactions will be subject to GST at 12.5%. For the second part (the period from 1 October 2010) transactions will be subject to GST at 15%.You will also need to calculate the GST rate change adjustment if you are on a payments or hybrid basis.
Calculating the GST Content at the 15% rate
Use the fraction 3/23. Any alternative will not be as accurate.
Special Situations
1. Writing off Bad Debts (Invoice Basis only)
If a debt exist as at 30 September 2010 and is subsequently written off due to non payment the debt must be written off using the original GST rate of 12.5% .
2. Contracts involving successive supplies and period payments
If you have any of these like insurance payments or finance leases under contract where the supplier has elected to keep payments with GST at 12.5% and have notified you of this by 31 October 2010 then you need to make an adjustment in you GST return period ending 30 September 2010.
We suggest you give Active a call to work thru how to made these adjustments as they can be complex.
3. Credit/Debit notes
If you have to issue a credit or debt note for a sale before 1 October 2010 then you must calculate the GST on the credit/debit note at 12.5%, since the time of supply was before 1 October 2010. You will also need to calculate the GST rate adjustment if you are on a payment or hybrid basis.
4. Secondhand Goods (Invoice basis only)
If you have purchased secondhand goods from a non registered person on or before 30 September 2010 where payment has not yet been made then you need to make a GST rate adjustment in your GST return period for 30 September 2010.
If you have any questions about any of the GST changes and how they may apply to your business please feel free to call the team at Active.
We are here to help you get it right.
Enjoy the long weekend, Regards The Active Team.
