Ala. Admin. Code r. 810-6-1-.141

Current through Register Vol. 43, No. 1, October 31, 2024

Section 810-6-1-.141 - Repairs, Outside Or Sublet

(1) The operator of a repair shop who sublets a part or all of a repair job purchases at wholesale tax free the repair parts installed by the outside or sub-repairman. The shop operator shall bill such repair parts to his customers separately from any charges for labor and services and report and pay sales tax only on the retail sales price of such parts. Provided however, where repair parts are not separately billed, sales tax shall be paid on the total charge for the job.

(2) When the sub-repairman uses or consumes materials and supplies, such as solder, paint, paint thinners, bits of wire, and cement, these materials are subject to tax at the time of purchase by the sub-repairman, the tax to be paid to the supplier. Provided where the sub-repairman also is engaged in the business of selling at retail such supplies and materials, they are purchased by him at wholesale and are subject to the tax when withdrawn from stock for use or consumption, the tax to be paid direct to the Department of Revenue by the sub-repairmen. § 40-23-1(10).

Author:

Ala. Admin. Code r. 810-6-1-.141

Statutory Authority:Code of Ala. 1975, § 40-23-31.