This Ruling has been obsoleted in part by AN 94(4)
Ruling 89-38
Renovations
The answers to the questions raised in your letter are as follows:
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New construction includes services up to the occupancy of the first tenant.
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It is still permissible to show the total with the words, "Tax Included" as long as records are maintained to support the various parts of the total amount billed.
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The service portion is the total bill (including profit) minus the cost of material (including sales tax). The general contractor should purchase the services of the subcontractor on resale.
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The sales tax is payable when the services are rendered. In this instance, sales tax should be applied to the installments.
LEGAL DIVISION
August 1, 1989