27-06-2019 12:45 PM - edited 27-06-2019 12:46 PM
Commercial purchase in NSW (not residential withholding) - Price excludes GST. In PEXA is the gross consideration amount entered in the Transfer the GST inclusive price? I'm assuming that it must be in order to pay it.
I am confused as this shows on the Transfer as consideration, as in the old paper world it would not be on the Transfer? The price is $168K excl GST.
on 27-06-2019 02:37 PM
I have recently processed a similar matter and we did not include GST in the transfer consideration because the consideration under the contract was exclusive of GST.
The GST was then added as a settlement adjustment in the 'financial settlement schedule' as it would normally be added to the settlement statement, to result in the GST being paid as part of settlement. The transfer should only reflect the contract purchase price, as the transfer is the document registered at LRS and the LRS is not concerned with GST.
Hope this helps!
on 13-01-2020 12:44 PM
If the transaction was via PEXA, was Stamp Duty calculated and paid on PEXA also?
Because Stamp Duty is assessed on the GST-inclusive amount, and is automatically processed (afaik) on the Transfer Consideration amount.
If you only inputted the GST-exclusive price, would that not lead to an under-assessment of Stamp Duty?
Can someone from PEXA please advise? Because currently Transfer Consideration must be GST-inclusive, however this auto-populates into the Settlement Page as the GST-exclusive price which makes zero sense.
on 15-01-2020 10:59 AM
Yes, we processed ours through PEXA.
In entering stamp duty through the EDR we entered the "consideration amount" as the amount payable inclusive of GST, value amount as the amount on the transfer and then GST payable.
We entered the transaction reference for PEXA and it matched up with our PEXA workspace which showed the consideration exclusive of GST.
The stamp duty paid as part of settlement was on the value of the consideration amount inclusive of GST.
My understanding is that you can assess duty inclusive of GST but have the purchase price less than that, such as if you were transferring between related parties, stamp duty is payable on the valuation amount, not the consideration paid.
Hope this helps.