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GST and Contractors

Discussion in 'Accounting, Tax & Legal' started by lawrence2, 26th Jul, 2010.

  1. lawrence2

    lawrence2 Member

    Joined:
    17th Jul, 2010
    Posts:
    8
    Location:
    Sydney
    Hey everyone,

    One of my friends is a contractor. her employer withheld a certain amount out of her total service fee. the employer said that amount was for GST.

    Anyone has an idea as to why the payment was withheld? (I think that's ridiculous as my friend didn't register for GST).

    Thanks for your help.
     
  2. Rob G.

    Rob G. Well-Known Member

    Joined:
    6th Jun, 2007
    Posts:
    717
    Location:
    Melbourne, VIC
    You use the words contractor, employer and service provider.

    Need to know more information.

    TR 2005/16 may be of some help in regards to withholding and GST.

    Cheers,

    Rob