Hi all.
Does the builder charge GST on just the margin portion or the whole amount?
For example. Traffic control company charges builder $500 + $50GST.
Total = $550inc GST
Builder adds 20% to total amount as his margin.
Does he charge GST on $660 (total inc 20% margin) or $110 (20% margin only)?
The contract states
Builder’s margin
The builder’s margin is _________% (if nothing stated then 20%)
The item is left blank so I am assuming it is 20% but not sure how GST is charged.
Thanks in advance.