Md. Code Regs. 18.08.01.03

Current through Register Vol. 52, No. 1, January 10, 2025

Section 18.08.01.03 - Inter-Company Transactions

A. The incidence of the gross receipts tax is intended to fall on a company providing services to the ultimate retail consumer. Therefore, in order to avoid taxing the same transaction more than once, any revenues received by a company for services that will later be resold may not be considered gross receipts as long as the reseller is subject to the tax on those revenues in this State or any other state. For example:

(1) Network access, billing, or other revenues derived from the provision of exchange access or other services to an interexchange carrier are not considered gross receipts for a local exchange carrier;

(2) Revenues derived from the transmission of gas or electricity to another gas or electric company for the purpose of resale are not considered gross receipts.

B. The amount and type of all revenues excluded from gross receipts shall be clearly identified in the filing of the annual tax return. The information necessary to support the amount of the exclusions shall be retained and made available to the Department upon request or audit.

Md. Code Regs. 18.08.01.03

Regulation .03 repealed effective October 26, 1992 (19:21 Md. R. 1893)
Regulation .03F amended effective September 21, 1998 (25:19 Md. R. 1497)
Regulations .03 and recodified to Regulation .04 effective April 17, 2000 (27:7 Md. R. 707)
Regulations Regulation .04 amended and recodified to .03 October 26, 1992 (19:21 Md. R. 1893)