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From: annily on 27 Jun 2010 23:01 Hunter wrote: > A phone company offered me a $10 discount if I bundled with their internet > service. I then find on the bill that I only get -$9.09 for the discount. > > Is this legal? > > I thought that if prices are advertised without mention of GST then it be > that GST is included. Would this apply to discounts in this case? > > I'm pretty sure the $9.09 discount would be before GST is applied (many bills show prices this way), hence $10 after GST. -- Long-time resident of Adelaide, South Australia, which probably influences my opinions.
From: Doug Jewell on 28 Jun 2010 04:22 Hunter wrote: > A phone company offered me a $10 discount if I bundled with their internet > service. I then find on the bill that I only get -$9.09 for the discount. > > Is this legal? Yes. > > I thought that if prices are advertised without mention of GST then it be > that GST is included. Would this apply to discounts in this case? Assuming the product/service attracts GST, then a price stated without mention of GST is GST inc. This applies equally to discounts which is what you got. To put it another way, you pay a certain amount for your phone service, which is inc GST. If you pay that amount less $10, it is the inc GST amount which is reduced by $10. If you are lucky enough to be able to claim a GST input credit, that is a completely different transaction, and is irrelevant to the amount you pay the Telco. > > > -- What is the difference between a duck?
From: Ray on 28 Jun 2010 15:53 On 6/28/2010 11:12 AM, Hunter wrote: > A phone company offered me a $10 discount if I bundled with their internet > service. I then find on the bill that I only get -$9.09 for the discount. > > Is this legal? > > I thought that if prices are advertised without mention of GST then it be > that GST is included. Would this apply to discounts in this case? > > If -$9.09 is being applied before GST is added to the account then it is exactly the same as adding GST to all your calls, then taking away $10 from the GST inc price.
From: annily on 30 Jun 2010 07:54
SolomonW wrote: > On Mon, 28 Jun 2010 18:22:00 +1000, Doug Jewell wrote: > >> Hunter wrote: >>> A phone company offered me a $10 discount if I bundled with their internet >>> service. I then find on the bill that I only get -$9.09 for the discount. >>> >>> Is this legal? >> Yes. >>> I thought that if prices are advertised without mention of GST then it be >>> that GST is included. Would this apply to discounts in this case? >> Assuming the product/service attracts GST, then a price >> stated without mention of GST is GST inc. This applies >> equally to discounts which is what you got. To put it >> another way, you pay a certain amount for your phone >> service, which is inc GST. If you pay that amount less $10, >> it is the inc GST amount which is reduced by $10. >> If you are lucky enough to be able to claim a GST input >> credit, that is a completely different transaction, and is >> irrelevant to the amount you pay the Telco. >>> >>> > > It depends on whether the person being supplied is a business or a person. > > Business to Business transactions are often quoted in GST EXT So are some business to person transactions, then GST is added to the total to arrive at the final figure. -- Long-time resident of Adelaide, South Australia, which probably influences my opinions. |