Everything should be back to semi-normal blogging schedules for me, by Friday June 2, 2006 ..
Food for thought
Are you leasing any computers? Vehicles? Other Equipment?
Lease payments are generally calculated as your lease payment plus GST and PST if you are the lessee .. and if you are using the equipment, vehicle or computer for business .. you may offset the GST against your collections, in the month you paid the GST.
On July 1, 2006 – the G.S.T. (goods and services tax) Rate is being reduced to 6%. If you have any automatic payments coming out of your bank or cheques to write .. don’t forget to reduce your payment by 1% for the reduction. It does NOT matter when the lease was signed, before or after the recent federal budget, since GST and PST are due when the lease payment is due.
One way to do that – assuming you already know what your lease payment is … becasuse you see it being removed out of your bank account each month! Let’s suppose it is combined lease payment of $259.56 per month.
Your reduction will be …. 1 / 114 x $259.56 = $2.28 … So, be sure to deduct this amount from your next remittance! In other words, your payment will now be $259.56 – $2.28 =$257.28
Alternatively, if you know your lease payment is currently $227.68 plus 7% GST $15.94 and 7% PST $15.94 = $259.56 .,, just change the GST percentage figure.
Your new payment will be calculated as $227.68 plus 6% GST $13.66 plus 7% PST $15.94 = $257.28
I guess it is a matter of looking at things … but, don’t OVERLOOK these things!