New construction townhome GST/HST Question.
But one of my RE friend says that I have to pay $24K (the HST rebate) or something along with the usual closing price...
Any idea ?
The second highlighted text is confusing.
I read the agreement below and that is why I kept it easy. (Sorry to make you read a time consuming text below, you can ignore it)
The agreement includes the following statements.
a) Subject to Schedule “H” attached hereto the Vendor and Purchaser agree that the Purchase Price (but not
any adjustments, upgrades and/or extras on which the Purchaser agrees to pay GST/HST in accordance
with the relevant legislation) includes GST/HST payable in respect of this transaction and the Vendor shall,
subject to Subparagraph 2.7(c) remit the GST/HST out of the Purchase Price on behalf of the Purchaser.
For the purposes of this Agreement “GST/HST” means the tax payable under Section 165 of the Excise Tax
Act (Canada) including the provincial component thereof payable under Subsection 165(2), if applicable.
The parties acknowledge that the provincial component of the GST/HST will apply to the within purchase
and sale if the Agreement is completed and both ownership and possession of the property is transferred
to the Purchaser after June 30, 2010.
The Purchaser agrees to pay as an adjustment on Closing the GST/HST eligible on any adjustments to the
Purchase Price credited to the Vendor on the Adjustments.
HST (Provincial and Federal portions) is included in purchase price. The purchase price has been determined taking into account the HST rebate (if applicable) to which the Purchaser is assigning to
the Vendor pursuant to compliance with Schedule “H” of the Agreement. The Purchaser shall reimburse the Vendor for any loss of this rebate by reason of the Purchaser’s default pursuant to