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
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