08 Oct 09 GST consequences when a partner takes trading stock for private use - GSTD 2009/2
This final GST Determination was issued on 7 October 2009. It was previously released in draft form as GSTD 2009/D1. Its full title is "Goods and services tax: are there GST consequences when a partner in a partnership takes goods held as trading stock for private or domestic use?"
The answer given is as follows:
"Yes, when a partner in a partnership takes goods held as trading stock for private or domestic use there is a supply by the partnership to the partner in the course or furtherance of the partnership's enterprise. If the other elements of s 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)1 are satisfied, there will be a taxable supply by the partnership to the partner. Division 72 will apply where the partner provides no consideration or inadequate consideration for the supply. Division 130, which deals with goods applied solely to private or domestic use, does not apply."
For a copy of GSTD 2009/2, go here