Some background: I'm a builder and I'm doing a joint venture with another Builder. 7 Townhouses in Melbourne. The project is spread over two titles in which I own 1 and he owns the other. We will be building the townhouses jointly and splitting the profits 50/50.
Does anyone have any experience with GST Groups? It's a little confusing.
As I understand we can register our individual companies as a GST Group and not have intra-party transactions subject to GST (i.e invoicing each other for work etc, subdividing lots and transferring them to each other)
My question is what name are invoices that we pay to go under? Our individual business or a joint name?
As I understand, we would apportion the GST credits quarterly to each other and share in the liability when the townhouses are sold.
Would this have any effect on the construction work we do outside of this GST Group? I.e we are both doing other projects on the side.
Any help from you guru's would be much appreciated.
Does anyone have any experience with GST Groups? It's a little confusing.
As I understand we can register our individual companies as a GST Group and not have intra-party transactions subject to GST (i.e invoicing each other for work etc, subdividing lots and transferring them to each other)
My question is what name are invoices that we pay to go under? Our individual business or a joint name?
As I understand, we would apportion the GST credits quarterly to each other and share in the liability when the townhouses are sold.
Would this have any effect on the construction work we do outside of this GST Group? I.e we are both doing other projects on the side.
Any help from you guru's would be much appreciated.