Exempt goods on purchase

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Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2012 Please tell me, what is the meaning of "purchase of goods exempt from tax" in vat return form 14.

Ram Avtar Singh

Ram Avtar Singh (Expert)
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11 January 2012 Examples of Exempt Items
These certificates are to be given to suppliers at the time of sale. Examples of items that can be purchased by persons who qualify for exemption include:

•Equipment, as defined under the Retail Sales Tax Act (Act), that is to be used by a religious institution exclusively in that part of its premises where religious worship or sabbath school is regularly conducted (See RST Guide 806 - Religious, Charitable and Benevolent Organizations).
•Farm equipment, farm tools, and farm machinery, as defined under the Act, that are to be used by a person engaged in the business of farming as well as building supplies and materials used to build, repair or modernize structures used exclusively for farm purposes. Instead of a PEC, farmers may use a Farmer Identification (ID) card, issued by a general farm organization (GFO), to claim an exemption from RST (See RST Guide 807 - Farmers).
•Hospital equipment, as defined under the Act, used exclusively by The Ontario Cancer Treatment and Research Foundation, or by a hospital that is approved as a public hospital under the Public Hospitals Act, or by a hospital that is established under the Community Psychiatric Hospitals Act, or a facility approved or established as a psychiatric facility under the Mental Health Act (See RST Guide 805 - Hospitals).
•Machinery and equipment, as defined under the Act, used by a qualifying manufacturer in the production of tangible personal property

CA Sanjeev Kr Jain

CA Sanjeev Kr Jain (Expert)
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18 January 2012 it means purchases on which vat is not charged by the supplier

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