Accounting Ravi, a dairy owner paid dollar 1,500 to purchase a freezer from Angela, Ravi's sister, a non registered supplier. Angela was moving overseas and wad doing a relocation sale. Angela paid dollar 1,900 GST inclusive for the freezer. The freezer will be used 100% for business purposes. Can Ravi claim GST input tax credit for the purchase of the freezer and if so, how much will be allowed? Explain fully.

Accounting Ravi, a dairy owner paid dollar 1,500 to purchase a freezer from Angela, Ravi's sister, a non registered supplier. Angela was moving overseas and wad doing a relocation sale. Angela paid dollar 1,900 GST inclusive for the freezer. The freezer will be used 100% for business purposes. Can Ravi claim GST input tax credit for the purchase of the freezer and if so, how much will be allowed? Explain fully.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 35P

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