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I would keep in mind that for the sake of $750, not having any proof of purchase if a. a warrenty claim is required or b. an injury was sustained whilst working on the job or c. an accident happend from a structural shortfall etc, then I suggest you look at your situation a little closer.
You then relieve the installer of any liability and assume that liability. Yu could also risk not having the build 'signed off' dependant on what exactly you are doing. You are also lining someones pocket who may also stall further/not show up too!
His receipt is not even worth a pinch of $h!t, jut a token of satisfaction to you. I would pony up the cash especially if you were seeking compensation and your case goes to court.
pinkboy
hi not_so_lucky..
Am I correct in assuming that the issues are the fault of the steel frame supplier? is that who you are considering seeking compensation from?
If their stuff up has cost you (in the region of) $10,000, then offering to go “off the books” doesnt seem like much of an offer.
To answer your question, yes this will effect your chances at compensation. Its not so much that your not paying GST, its that your paying cash so it “never happened”. As pinkboy has said, paying cash off the books pretty much negates your chances at any future court action. (which might be why they offered it to you?) IMHO, you have the choice of paying $8250, and a good chance of getting it all back.. or paying $7500 and having no chance of getting it back.
Sorry about the confusion. The supplier and installer are two separate companies. The supplier was paid in full 6 months ago and it was all with gst, so no problem there. It is the installer who is offering to accept the third payment in cash (basically anything on top of his original quote which came up as a result of the stuffups with the materials provided). We have been extremely happy with the installer (not supplier) and the first two payments were paid to him WITH gst.
I hope to be compensated for the full amount of all the extra materials we've had to purchase as well as the additional labour costs, but in case we don't I am thinking it would be nice to save $750…
pinkboy wrote:I would keep in mind that for the sake of $750, not having any proof of purchase if a. a warrenty claim is required or b. an injury was sustained whilst working on the job or c. an accident happend from a structural shortfall etc, then I suggest you look at your situation a little closer.
pinkboy
The installer will still provide me with a receipt, it will just state that I paid him $7,500, but it will not state that I paid gst (if I choose to go down this path). Also, I have already paid a large sum of money to the installer (and paid gst).
GST should be included in the price. If he doesn't pay the ATO that is up to him.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
not_so_lucky wrote:The installer will still provide me with a receipt, it will just state that I paid him $7,500, but it will not state that I paid gst (if I choose to go down this path). Also, I have already paid a large sum of money to the installer (and paid gst).I guess your already aware that there’s nothing legitimate about this. Even without knowing the specifics, I’m certain that the receipt he gives you will not be worth the paper its written on simply because he cannot give you a legitimate receipt and just choose not to charge you GST because he’s a nice guy.
Its ultimately your call, personally I wouldnt take the offer, might save you $750 for now but will almost certainly end up costing you in the long run…
not_so_lucky wrote:The installer will still provide me with a receipt, it will just state that I paid him $7,500, but it will not state that I paid gst (if I choose to go down this path). Also, I have already paid a large sum of money to the installer (and paid gst).So you are going to pay someone in $7500 physical cash? Because if you pay him in any other way, he will end up having to pay GST to the ATO ($6818.18 + $681.82 GST = $7500). I think you're better off paying the $750 extra instead of a messy court battle trying to prove any fault/injury etc down the track should it happen. These cost far outweight a small saving now.
It doesnt matter what the receipt says, if he tries to claim GST back it will only be 1/11 oth the sale price.
pinkboy
You've lost me totally on this one, hs the supplier has stuffed up or have they failed to supply all of the components which you have paid for however you are out of pocket by having to pay a local suppier to resupply the missing pieces or have you been hit with additional charges by your installer to re-establish several times due to the lack of co-ordination on site (shared responsibility)?
Scott No Mates wrote:You've lost me totally on this one, hs the supplier has stuffed up or have they failed to supply all of the components which you have paid for however you are out of pocket by having to pay a local suppier to resupply the missing pieces or have you been hit with additional charges by your installer to re-establish several times due to the lack of co-ordination on site (shared responsibility)?That is correct. The supplier failed to supply all of the components which I have paid for and am out of pocket by having to pay a local suppier to resupply the missing pieces. In addition to failing to supply all the componets they sent a LOT of incorrect compoents (eg incorrect trusses etc) which had to be taken appart and new and correct ones made up – which is where the additional $7,500 labour bill came from.
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