Concord Publishing House, Inc. vs. Director of Revenue(1) In Concord Publishing, the court construed...

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Accounting

Concord Publishing House, Inc. vs. Director of Revenue
(1) In Concord Publishing, the court construed the statute asexempting from sales and use tax "machinery and equipment" (a) useddirectly (b) in manufacturing (c) a product which is intended to besold ultimately for final use or consumption (d) if the machineryor equipment was purchased to replace existing equipment or toexpand existing manufacturing.
What could be the legislative purpose behind theseconditions?
(2) What is a resale exemption? How far must a vendor go inverifying its customer's assertion that it is purchasing goods forresale?
(3) Can a use tax (complementary tax to sales tax) apply to abroader set of transactions than those to which the sales taxapplies?
(4) Are exemptions or exclusions applicable to the sales taxalso applicable to the use tax?
(5) What is the purpose of the Streamlined Sales and Use TaxAgreement? What are the SSUTA sourcing rules for sales and usetax?

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1 Legislative Purpose behind these conditions is that there should not be double taxation which will increase the price of product at final consumption stage Hence only final end sales or retail sales are taxable All medieval sales or sales before reaching the stage of final end salesretail are exempt from sales tax A product should only be taxed when it is to be sold for final use or consumption 2 See Answer

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In: AccountingConcord Publishing House, Inc. vs. Director of Revenue(1) In Concord Publishing, the court construed the...Concord Publishing House, Inc. vs. Director of Revenue(1) In Concord Publishing, the court construed the statute asexempting from sales and use tax "machinery and equipment" (a) useddirectly (b) in manufacturing (c) a product which is intended to besold ultimately for final use or consumption (d) if the machineryor equipment was purchased to replace existing equipment or toexpand existing manufacturing.What could be the legislative purpose behind theseconditions?(2) What is a resale exemption? How far must a vendor go inverifying its customer's assertion that it is purchasing goods forresale?(3) Can a use tax (complementary tax to sales tax) apply to abroader set of transactions than those to which the sales taxapplies?(4) Are exemptions or exclusions applicable to the sales taxalso applicable to the use tax?(5) What is the purpose of the Streamlined Sales and Use TaxAgreement? What are the SSUTA sourcing rules for sales and usetax?