Taxation Theory Practice and Law Name of the University Student Name

Running Head: TAXATION THEORY PRACTICE AND LAW
Taxation Theory Practice and Law
Name of the Student
Name of the University
Date

TAXATION THEORY PRACTICE AND LAW
Table of Contents
Explanation of Question 1:..............................................................................................................3
Explanation of Question 2:..............................................................................................................7
Reference list.................................................................................................................................10

TAXATION THEORY PRACTICE AND LAW
Explanation of Question 1:
The GST practices of a company named City Sky has been considered in this case. The case
study depicts the factors related to GST obligations and the practices of calculating the GST for
the company.
Inspection of the case:
The company City Sky has planned towards building up a fifteen-floored building for sale. They
have appointed a professional lawyer named Maurice Blackburn for handling the legal dealings
of this project. As a charge of providing the legal service to the company, he has paid an amount
of $33000. Maurice Blackburn will provide legal guidance to the company and will help in the
approval of the project. City Sky mainly handles property management and solutions for
brokerage. The company build, resell, acquire properties and known as the innovative property
dealer in Brisbane city.
Apart from that, the company fulfills the requirements of both the small property owner and the
large property owner. The dealings related with a property require adequate legal services that
have been discussed in this case along with the legal issues related to it. These project portraits
the adoption of right measuring tools for calculating the GST. The utilization of these methods
will help the company to calculate the GST amount related to the project cost (Altmann, 2015).
The legal service cost of the project is 30000 dollars that means $33000*100/110. The GST
amount is $3000, which means 10% on the service amount of $30000.
The calculation after adding the GST amount, legal service cost of $30000 ($33000*100/110) +
GST amount of $3000 ($30000*10%).
It is important to follow all the rules regarding GST, as it is helpful in acquiring the ITC or Input
Tax Credit for the company. The companies need to register themselves under the GST act,
which will help them to get the GST number and the facilities regarding GST while selling
anything (Benowitz, 2017). Along with the payment of Goods and Services Tax, the company