45 IAC 2.2-8-16 - Direct payment permits; application

Authority: IC 6-8.1-3-3

Affected: IC 6-2.5

Sec. 16.

(a) The direct payment permit must be applied for, and is normally issued only in those instances where it is shown that it is impossible at the time of purchase to determine whether or not the materials will be used for an exempt purpose. The holder of such a permit is required to furnish his suppliers with a copy of the permit, and the permit must be renewed annually.

(b) The retail merchant who sells to a customer who furnishes a copy of a direct payment permit is not required to collect sales tax; but must retain a copy of the permit in his file.

(c) A direct payment permit is not a declaration that the issuer is entitled to exemption, but is rather a declaration that the issuer will remit use tax on any purchase on which sales tax was due.

Notes

45 IAC 2.2-8-16

Department of State Revenue; Ch. 8, Reg. 6-2.5-8-9 b (010); filed Dec 1, 1982, 10:35 am: 6 IR 67