TaxTMI 
TaxTMI 
XYZ is making payment to various parties on behalf of the persons / entities which are related to XYZ. The amount so paid is debited to the respective person / entities account. This being paid on behalf of related parties; will it amount to rendering service to related parties and XYZ will be liable to pay GST on it even if no consideration is received from related parties?
Amount paid on behalf of related party
27 Nov 2018 
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Intermediary services: payments made on behalf of related parties may attract GST unless treated as exempt loan interest.
Payments made by a business on behalf of related parties may be treated as a taxable supply if the payer functions as an intermediary arranging or facilitating services; alternatively, the payments can be characterised as loans or advances to related parties, with consideration being interest that may be exempt from GST. The legal issue hinges on whether the payer's role is facilitative (intermediary) or financial (lender) and whether the activity constitutes a supply in the course or furtherance of business. (AI Summary)
Payments made by a business on behalf of related parties may be treated as a taxable supply if the payer functions as an intermediary arranging or facilitating services; alternatively, the payments can be characterised as loans or advances to related parties, with consideration being interest that may be exempt from GST. The legal issue hinges on whether the payer's role is facilitative (intermediary) or financial (lender) and whether the activity constitutes a supply in the course or furtherance of business. (AI Summary)