02 Aug 12 GST: Lease and subsequent sale of secondhand goods - GSTD 2012/6
On 1 August 2012, the ATO issued GST Determination GSTD 2012/6 entitled "Goods and services tax: when an entity makes a taxable supply of second-hand goods by way of lease before making a taxable supply of the goods by way of sale (or exchange), are both taxable supplies taken into account to quantify and attribute input tax credits under Subdivision 66-A of the A New Tax System (Goods and Services) Tax Act 1999?"
It was not previously released in draft form.
The answer to the question posed by the Determination is Yes. The Ruling provides guidance on the amount of the input tax credits arising under s 66-10(1) and s 66-15(1).