Statutes, codes, and regulations
Indiana Administrative Code
Title 45 - DEPARTMENT OF STATE REVENUEArticle 3.1 - ADJUSTED GROSS INCOME TAX
Rule 45 IAC 3.1-1 - State Adjusted Gross Income Tax
Section 45 IAC 3.1-1-54 - Definition of sales to United States government

45 Ind. Admin. Code 3.1-1-54

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Current through October 31, 2024
Section 45 IAC 3.1-1-54 - Definition of sales to United States government

Authority: IC 6-8.1-3-3

Affected: IC 6-3-2-2

Sec. 54.

Sales to United States Government. Gross receipts from the sales of tangible personal property to the United States Government are in this state if the property is shipped from an office, store, warehouse, factory or other place of storage in this state. For the purposes of this regulation [ 45 IAC 3.1-1-54 ], only sales for which the United States Government makes direct payment to the seller pursuant to the terms of the contract constitute sales to the United States Government. Thus, as a general rule, sales by a subcontractor to the prime contractor, the party to the contract with the United States Government, do not constitute sales to the United States Government. However, sales made to a prime contractor will be considered sales to the United States Government where the prime contractor is authorized to act as agent for the United States Government, and for this reason only qualifies to purchase under Federal Supply Contracts entered into between the taxpayer and the United States Government.

Examples:

(1) A taxpayer contracts with the General Services Administration to deliver X number of trucks which were paid for by the United States Government. The United States Government is the purchaser.
(2) The taxpayer as a subcontractor to a prime contractor with the National Aeronautics and Space Administration contracts to build a component of a rocket for $1,000,000. The sale of the subcontractor to the prime contractor is not a sale to the United States Government. When the United States Government is the purchaser of property which remains in the possession of the taxpayer in this state for further processing under another contract, or for other reasons, "shipment" is deemed to be made at the time of acceptance by the United States Government.

45 IAC 3.1-1-54

Department of State Revenue; Reg 6-3-2-2 e (050); filed Oct 15, 1979, 11:15 am: 2 IR 1528; errata, 2 IR 1743