Question

Which of the following statements related to fully taxable and zero-rated supplies in a participating province is correct? Fully taxable supplies are taxed at the HST rate and zero-rated supplies are taxed at 0.0 percent. Input tax credits are available on only expenditures related to fully taxable supplies. Fully taxable supplies are taxed at the HST rate and zero-rated supplies are taxed at 0.0 percent. Expenditures related to both types of supplies are eligible for input tax credits. Both types of supplies are taxed at the HST rate. Input tax credits are available on only expenditures related to fully taxable supplies. Fully taxable supplies are taxed at the HST rate and zero-rated supplies are taxed at 0.0 percent. Input tax credits are available on all expenditures related to fully taxable supplies and on only capital expenditures related to zero-rated supplies. 3. Which of the following is NOT a fully taxable supply? A bus ride from home to school. The purchase of a meal in a restaurant. The purchase of a litre of milk at the grocery store. The completion of a tax return by an accounting firm. 4. A GST rebate is available to employees of a GST registrant located in a province that does not participate in the HST program. The calculation is based on a factor of 5/105 of: all taxable benefits received from their employer and all expenses deducted in the calculation of net employment income. all eligible expenses for fully taxable supplies deducted in the calculation of net employment income, except for capital cost allowances. all eligible expenses for fully taxable supplies deducted in the calculation of net employment income, including capital cost allowances. all taxable benefits received from their employer. all expenses deducted in the calculation of net employment income. 8. Paddy's Cycle Shop operates in Ontario where the HST rate is 13 percent. A summary of the shop's transactions for the month of January is as follows: Account Amount Before HST Revenues $300,000 Purchase of bicycles $150,000 Purchase of tires and other parts $18,500 Salaries $8,000 Premises rental $3,000 The HST that is to be remitted in respect of the above transactions is? $17,095 $15,665 $16,055 $16,705 None of the above

Which of the following statements related to fully taxable and zero-rated supplies in a participating province is correct?
Fully taxable supplies are taxed at the HST rate and zero-rated supplies are taxed at 0.0 percent. Input tax credits are available on only expenditures related to fully taxable supplies.
Fully taxable supplies are taxed at the HST rate and zero-rated supplies are taxed at 0.0 percent. Expenditures related to both types of supplies are eligible for input tax credits.
Both types of supplies are taxed at the HST rate. Input tax credits are available on only expenditures related to fully taxable supplies.
Fully taxable supplies are taxed at the HST rate and zero-rated supplies are taxed at 0.0 percent. Input tax credits are available on all expenditures related to fully taxable supplies and on only capital expenditures related to zero-rated supplies.

3. Which of the following is NOT a fully taxable supply?
A bus ride from home to school.
The purchase of a meal in a restaurant.
The purchase of a litre of milk at the grocery store.
The completion of a tax return by an accounting firm.

4. A GST rebate is available to employees of a GST registrant located in a province that does not participate in the HST program. The calculation is based on a factor of 5/105 of:
all taxable benefits received from their employer and all expenses deducted in the calculation of net employment income.
all eligible expenses for fully taxable supplies deducted in the calculation of net employment income, except for capital cost allowances.
all eligible expenses for fully taxable supplies deducted in the calculation of net employment income, including capital cost allowances.
all taxable benefits received from their employer.
all expenses deducted in the calculation of net employment income.

8. Paddy's Cycle Shop operates in Ontario where the HST rate is 13 percent. A summary of the shop's transactions for the month of January is as follows: Account Amount Before HST Revenues $300,000 Purchase of bicycles $150,000 Purchase of tires and other parts $18,500 Salaries $8,000 Premises rental $3,000 The HST that is to be remitted in respect of the above transactions is? $17,095 $15,665 $16,055 $16,705 None of the above

Added by Taylor R.

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