RetailCo is a business registered for GST and reporting on the cash basis each quarter. RetailCo only makes taxable supplies, and incurs the following expenses during the June 2021 quarter:n
nSalaries and wages paid to employees $33,000. n
Interest paid on a bank loan to $1,100. n
Electricity and telephone charges $1,650. n
Teabags, instant coffee and milk for the staff kitchen $110. n
 nBased on the above information which one of the following amounts represents the input tax credits RetailCo is entitled to for the June 2021 quarter, assuming valid tax invoices are held for these expenses and the amounts include GST where the acquisitions are taxable supplies?nn
n
a.nNiln
nb.n$3,260.n
c.n$150.n
d.n$260.n
e.n$250.

Answer rating: 100% (QA)

Solution GST is not applicable on salaries to employ... View the full answer