103 KAR 28:060.
RELATES TO: KRS
139.050, 139.100, 139.130
AUTHORITY: KRS Chapter 13A
FUNCTION, AND CONFORMITY: To interpret the sales and use tax law as it applies
to the furnishing of parts or materials under the provisions of a guarantee.
Section 1. The
sale of tangible personal property by a retailer includes the furnishing,
pursuant to the guaranty provisions of the contract of sale, of replacement
parts or materials. Sales of such property to a retailer are therefore sales
for resale with respect to which tax does not apply.
Section 2. Any
charge made by the retailer for replacement parts or material shall be included
in "gross receipts" or "sales price," as the case may be.
(SU-46; 1 Ky.R. 231; eff. 1-8-75.)