Blog

Money Doesn’t Come Without Guidance ...

HOW WILL AN INDIVIDUAL MAKE ADJUSTMENTS ON HIS OR HER BAS?

Awesome Image
24
May

On the Business Activity Statement (BAS), you have to adjust the GST that you pay for a reporting period. This is called an adjustment. There are two types of adjustments – increasing adjustments and decreasing adjustments. With the increasing adjustment, you pay more GST for the reporting period and when you have a decreasing adjustment you pay less GST for the reporting period.

You may have to make an adjustment if an adjustment event occurs for sales or for purchase due to change in the amount of GST you pay or GST credit you can claim. The adjustment amount for the sales is the difference between the GST you paid or were liable to pay in the earlier tax period and the GST you have been liable to pay considering the adjustment event. If you have an adjustment for purchase, the amount is the difference between the GST credit you claimed in the earlier tax period and the GST you have claimed when the adjustment event was taken into account.

You need to include the adjustment amount in the activity statement for the reporting period if you make an adjustment. If your account for GST is on a cash basis, adjustments need to be reported in the activity statement for the reporting period in which you make the payment. You need to report the adjustment in the activity statement If you only paid part of the required amount for the reporting period to the extent that you paid the required amount.


Comments 0

    Currently, there are no comment.

Login to comment

Latest Posts

Popular Post

We provide the fastest, easiest and most effective online tax return solution

trustedsite