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Ed Johnson
Ed Johnson, Tax Preparer
Category: Tax
Satisfied Customers: 10760
Experience:  GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
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do you charge tax for contract mechanical labor

Resolved Question:

do you charge tax for contract mechanical labor?
Submitted: 7 years ago.
Category: Tax
Expert:  Merlo replied 7 years ago.
HelloCustomer

I assume you are talking about sales tax, is that correct?

What state are you licensed in?

Are you working as a sub-contractor for another mechanical firm, or are you working directly at the retail level?
Customer: replied 7 years ago.
WE WORK DIRECTLY FOR THE OILFIELD COMPANY OUR MECHANICS WORK ON THEIR EQUIPMENT ON THEIR LOCATION WE PROVIDE NO PARTS ONLY THE LABOR TO MAINTENANCE THE EQUIP. I NEED THE TO KNOW THE CODES AND WHERE TO FIND INFO. ON TAX CODE FOR TEXAS AND LA. THE BIG QUESTION IS DO WE CHARGE SALES TAX FOR OUR SERVICE WHICH IS LABOR?
Expert:  Ed Johnson replied 7 years ago.

Dear lamdkcc,

 

I have been asked to take a look at your question.

 

There is no sales tax per se. FOR TEXAS

 

YOu have to charge and collect what is called an occupation tax. Please see the following publication: http://www.window.state.tx.us/taxinfo/taxpubs/tx96_199.html

 

You will note that if your crew is not providing the services listed in the publication you do not have to charge tax.

 

Your services as stated do not appear in the services that have to be sales taxable:

http://www.window.state.tx.us/taxinfo/taxpubs/tx96_259.html

 

LOUISIANA: I will get that for you. In the mean time, please read this link, scroll to the part about non-resident contractors and subcontractors. http://www.rev.state.la.us/sections/business/sales.aspx

 

 

 

Ed Johnson, Tax Preparer
Category: Tax
Satisfied Customers: 10760
Experience: GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
Ed Johnson and 2 other Tax Specialists are ready to help you