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If 40% of the $15,000 progress payment of March 1, 2013 (i.e., $6,000) is reasonably attributable to property delivered and services performed before April 2013, the HST would not apply to that part of the payment. However, GST at 5% applies to 40% of this payment (GST = 5% of $6,000 = $300). Since 60% of the $15,000 progress payment (i.e., $9,000) is reasonably attributable to property delivered and services performed on or after April 1, 2013, the 14% HST would apply to 60% of the payment (HST = 14% of $9,000 = $1,260).
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