Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
960977
XXXXXXXXXX A.M. Brake
April 10, 1996
Dear XXXXXXXXXX:
This is in reply to your letter of March 16, 1996 wherein you asked what treatment should be given GST paid on items purchased for use in your business which is not registered for GST purposes.
Since you are not registered, you are not entitled to any refund of GST on these purchases and, since you do not collect GST, you would not be entitled to any Input Tax Credit. The proper treatment would be to include the GST as being a part of the total cost of the item acquired. In the case of depreciable property, the GST would also form part of the capital cost of the asset for capital cost allowance purposes.
We trust our comments will be of assistance to you.
Yours truly,
R. Albert
for Director
Business and General Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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© Her Majesty the Queen in Right of Canada, 1996
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© Sa Majesté la Reine du Chef du Canada, 1996
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