27 CFR 53.181 - Further manufacture included.

§ 53.181 Further manufacture included.

(a)In general. The payment of tax imposed by chapter 32 of the Code on the sale of any article by a manufacturer of the article will be considered to be an overpayment by reason of any use in further manufacture, or sale as part of a second manufactured article, described in paragraph (b) of this section. This section applies in those cases where the exportation, use, or sale (or any combination of those activities) referred to in this paragraph occurs before any other use.

(b)Use of tax-paid articles in further manufacture described in section 6416(b)(3)(A) of the Code. A payment of tax under chapter 32 of the Code on the sale of any article, directly or indirectly, by the manufacturer of the article to a subsequent manufacturer will be considered to be an overpayment under section 6416(b)(3)(A) of the Code if the article is used by the subsequent manufacturer as material in the manufacture or production of, or as a component part of, a second article manufactured or produced by the subsequent manufacturer which is taxable under chapter 32 of the Code. For this purpose it is immaterial whether the second article is sold or otherwise disposed of, or if sold, whether the sale is a taxable sale. Any article to which this paragraph applies which would have been used in the manufacture or production of a second article, except for the fact that it was broken or rendered useless in the process of manufacturing or producing the second article, will be considered to have been used as a component part of the second article.

[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-312, 56 FR 31084, July 9, 1991]

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].

It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.

United States Code

§ 4181 - Imposition of tax

§ 4182 - Exemptions

§ 4216 - Definition of price

§ 4217 - Leases

§ 4218 - Use by manufacturer or importer considered sale

§ 4219 - Application of tax in case of sales by other than manufacturer or importer

§ 4221 - Certain tax-free sales

§ 4222 - Registration

§ 4223 - Special rules relating to further manufacture

§ 4225 - Exemption of articles manufactured or produced by Indians

§ 6001 - Notice or regulations requiring records, statements, and special returns

§ 6011 - General requirement of return, statement, or list

§ 6020 - Returns prepared for or executed by Secretary

§ 6021 - Listing by Secretary of taxable objects owned by nonresidents of internal revenue districts

§ 6061 - Signing of returns and other documents

§ 6071 - Time for filing returns and other documents

§ 6081 - Extension of time for filing returns

§ 6091 - Place for filing returns or other documents

§ 6101 - Period covered by returns or other documents

§ 6102 - Computations on returns or other documents

§ 6103 - Confidentiality and disclosure of returns and return information

§ 6104 - Publicity of information required from certain exempt organizations and certain trusts

§ 6109 - Identifying numbers

§ 6151 - Time and place for paying tax shown on returns

§ 6155 - Payment on notice and demand

§ 6161 - Extension of time for paying tax

§ 6301 - Collection authority

§ 6302 - Mode or time of collection

§ 6303 - Notice and demand for tax

§ 6311 - Payment of tax by commercially acceptable means

§ 6402 - Authority to make credits or refunds

§ 6404 - Abatements

§ 6416 - Certain taxes on sales and services

§ 7502 - Timely mailing treated as timely filing and paying

§ 7805 - Rules and regulations