nsing230 0 Report post Posted June 28, 2009 I am reconstructing a new house and am trying to save on GST. Does anyone has any suggestions or experience in managing this cost? Share this post Link to post Share on other sites
leechaorui 2 Report post Posted June 29, 2009 I am reconstructing a new house and am trying to save on GST. Does anyone has any suggestions or experience in managing this cost? I think it is unavoidable. However, you can source for cheaper and high quality materials for lower prices. Share this post Link to post Share on other sites
nsing230 0 Report post Posted June 30, 2009 I think it is unavoidable. However, you can source for cheaper and high quality materials for lower prices. Thank you. I was told that some contractors can set up a separate company for the job so that no GST is chargeable. Have you heard of this? Share this post Link to post Share on other sites
leechaorui 2 Report post Posted June 30, 2009 (edited) Thank you. I was told that some contractors can set up a separate company for the job so that no GST is chargeable. Have you heard of this? I think this will constitute tax evasion on the part of the company and IRAS can go after them. If the company becomes insolvent before the work is completed, it will not be good for you. In any case, get the company to purchase a performance bond so that if the company go bust, you can still get back the contract sum and get another builder to carry on the work. Check out several builders' pricing and quality before signing on the dotted line to award the contract. The one that set up a company to evade GST may not be cheaper than another which pays GST. When the contractor buys materials, beams, metal, sand, cement, titles, pipes, etc..., they have to pay GST for them and the cost will still be passed on to you. At the end of the day, you still cannot avoid paying GST entirely. Lets hope that the govt will waive or reduce GST in the light of the economic crisis. Edited June 30, 2009 by leechaorui Share this post Link to post Share on other sites
nsing230 0 Report post Posted July 1, 2009 I think this will constitute tax evasion on the part of the company and IRAS can go after them. If the company becomes insolvent before the work is completed, it will not be good for you. In any case, get the company to purchase a performance bond so that if the company go bust, you can still get back the contract sum and get another builder to carry on the work. Check out several builders' pricing and quality before signing on the dotted line to award the contract. The one that set up a company to evade GST may not be cheaper than another which pays GST. When the contractor buys materials, beams, metal, sand, cement, titles, pipes, etc..., they have to pay GST for them and the cost will still be passed on to you. At the end of the day, you still cannot avoid paying GST entirely. Lets hope that the govt will waive or reduce GST in the light of the economic crisis. Thank you. Your advice is very helpful. Share this post Link to post Share on other sites
horseman 0 Report post Posted July 21, 2009 More tax avoidance than evasion, I think. The company can avoid GST registration by keeping annual turnover below $1mil. But this leaves an obvious a trail for the taxman to pursue if the same company directors keep registering small companies in the same trade in succession. I think this will constitute tax evasion on the part of the company and IRAS can go after them. If the company becomes insolvent before the work is completed, it will not be good for you. In any case, get the company to purchase a performance bond so that if the company go bust, you can still get back the contract sum and get another builder to carry on the work. Check out several builders' pricing and quality before signing on the dotted line to award the contract. The one that set up a company to evade GST may not be cheaper than another which pays GST. When the contractor buys materials, beams, metal, sand, cement, titles, pipes, etc..., they have to pay GST for them and the cost will still be passed on to you. At the end of the day, you still cannot avoid paying GST entirely. Lets hope that the govt will waive or reduce GST in the light of the economic crisis. Share this post Link to post Share on other sites
wuga98 0 Report post Posted July 21, 2009 not pt saving the gst and run foul of the law. Thank you. I was told that some contractors can set up a separate company for the job so that no GST is chargeable. Have you heard of this? Share this post Link to post Share on other sites
wuga98 0 Report post Posted July 21, 2009 the $1M is not a hard and fast rule, a biz can volunteer to be gst registered even if your annual turnover is <$1M. It all depends on where are your suppliers and customers. More tax avoidance than evasion, I think. The company can avoid GST registration by keeping annual turnover below $1mil. But this leaves an obvious a trail for the taxman to pursue if the same company directors keep registering small companies in the same trade in succession. Share this post Link to post Share on other sites
merryman 0 Report post Posted July 21, 2009 only companies who registered with IRAS under GST ruling can collect GST lor so there is no tax evasion if the company that isn't registered is providing the services Share this post Link to post Share on other sites
