GST and Contractors

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

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  1. lawrence2

    lawrence2 Member

    Joined:
    1st Jul, 2015
    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.
     
    lawrence2, 26th Jul, 2010
    #1
  2. Rob G

    Rob G Well-Known Member

    Joined:
    16th Oct, 2015
    Posts:
    966
    Location:
    Melbourne
    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
     
    Rob G, 27th Jul, 2010
    #2