Browse Forums General Discussion 1 Feb 21, 2011 8:49 pm Hi, I have recently come to a point in my build where obtaining the cement renderer is my responsibility. the builder has allowed a certain amount to complete this work and anything above it is my responsibility to which i agreed to. Now that i have found one and have advised him that he got the job my builder approached him for a copy of the quote. He has then (builder) come back to me and stated that this quote does not include GST and that i would have to pay the GST component to him (the builder). Now what i dont understand is that i have hired this tradesman not the builder, shouldn't the builder pay me and i disburse the monies as i see fit? it is clear in the building contract the allowance for the job, now he is saying that he is going to minus the GST component from that allowance. is this normal and correct procedure? this is the first time i have had to use contract allowance so i dont know how it works. the contract is a standard NSW HIA contract and i cant find anything in there that states anything to do with this situation. The builder has explained that it was his accountant that advised him this was the way to go but i think that might be a load of crap and a quick way for him to gain an extra couple of grand out of me. if it is right then fine ill move on but something in my gut tells me i am being taken advantage of cause i have caught him out with a couple of other things. PLease help https://forum.homeone.com.au/viewtopic.php?f=36&t=37134 THE THREAD https://forum.homeone.com.au/viewtopic.php?f=31&t=35962 THE BLOG! http://pedrosinspiredbeauty.blogspot.com/ BRICKS BRICKS ARE FINISHED... ROOF STARTS TODAY 03/02/2011!. Re: ACCOUNTANT ADVICE "RIPPED OFF OR LEGIT?" 2Feb 21, 2011 9:18 pm Why is your renderer not including GST in their quote? Unless they are very small and under the limit, then they should do. I'm not a builder, but I am an accountant. The builder would have assumed that a certain amount, say $8,800 ($8,000 plus $800 GST) was the amount he would have to pay to a supplier for the rendering. If you found a supplier for $8,800 but who did not charge GST, then the builder would be worse off as re could not claim the $800 GST back from the tax office. So, at face value, sounds OK to me. Re: ACCOUNTANT ADVICE "RIPPED OFF OR LEGIT?" 3Feb 21, 2011 9:19 pm The issue here is - who is the renderer supplying their services to ? If it is to you, and the builder has effectively agreed to pay some of the bill, then GST is payable on the quote only if the renderer is registered for GST. The builder has nothing to do with it in this situation and cannot ask you for extra. If the renderer is supplying his services to the builder, that is a different situation. In that case, the builder is still supplying the rendering to you as part of the build contract (its just that you have picked the subbie instead of him), and assuming the builder is registered for GST, then GST is payable. However he can't charge you extra if thats not in the contract. If you've agreed to a fixed price then he has to pay the GST out of that. If you've just agreed to pay "the difference", I would think he has a good case to add on 10% for the GST. Clear as mud ? Re: ACCOUNTANT ADVICE "RIPPED OFF OR LEGIT?" 4Feb 21, 2011 9:25 pm yes he is under the limit and he explained that to the builder. What i dont understand i guess is the allowance part. if he is paying me then why would GST matter and if he is paying the renderer his part the invoice is still addressed to me so how does GST become a factor? https://forum.homeone.com.au/viewtopic.php?f=36&t=37134 THE THREAD https://forum.homeone.com.au/viewtopic.php?f=31&t=35962 THE BLOG! http://pedrosinspiredbeauty.blogspot.com/ BRICKS BRICKS ARE FINISHED... ROOF STARTS TODAY 03/02/2011!. Re: ACCOUNTANT ADVICE "RIPPED OFF OR LEGIT?" 6Feb 21, 2011 9:39 pm it is not written anywhere how this is to work. i was allocated a fix price to source the renderer. i am hiring the renderer not the builder. the services are in my name as well as the warranty. the builder wants to make the payment out to the renderer and me sort the difference but at no point did i agree to this its how the builder wants to work it. i was under the impression that the monies came to me and i payed the subbie. only after i sourced someone for the job did the the builder approach him for his quote. as far as i am concerned its a service provided to me not the builder. this is even to the point where the builder stated he would make up a letter disengaging his responsibility of anything to do with the quality of work to which i agreed. i was not worried about this as my warranty is stated on the invoice provided to me in my name from the renderer https://forum.homeone.com.au/viewtopic.php?f=36&t=37134 THE THREAD https://forum.homeone.com.au/viewtopic.php?f=31&t=35962 THE BLOG! http://pedrosinspiredbeauty.blogspot.com/ BRICKS BRICKS ARE FINISHED... ROOF STARTS TODAY 03/02/2011!. Re: ACCOUNTANT ADVICE "RIPPED OFF OR LEGIT?" 7Feb 21, 2011 9:48 pm GUESS WHAT HOWS THIS... JUST GOT A MESSAGE FROM THE RENDERER APOLOGIZING FOR LETTING ME DOWN BUT THE FUSS HAS NOW MADE HIM THINK THEIR WILL BE TROUBLE GETTING PAID FOR HIS WORK AND HAS JUST PULLED OUT. f$%KING GR8. https://forum.homeone.com.au/viewtopic.php?f=36&t=37134 THE THREAD https://forum.homeone.com.au/viewtopic.php?f=31&t=35962 THE BLOG! http://pedrosinspiredbeauty.blogspot.com/ BRICKS BRICKS ARE FINISHED... ROOF STARTS TODAY 03/02/2011!. Re: ACCOUNTANT ADVICE "RIPPED OFF OR LEGIT?" 8Feb 21, 2011 10:10 pm yuk - sounds messy! I can see why the renderer has pulled the pin but really feel for you. We have had our own issues with builders and subbies and fuzzy areas of the contract. It is such a headache! I couldn't attached the photo for some reason. 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