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USTaxAdvising
USTaxAdvising, CPA
Category: Tax
Satisfied Customers: 1237
Experience:  US Taxation specialist.
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I have income as business consultant from other business. I

Customer Question

I have income as business consultant from other business. I have retail operation and whole sale operation income. I inform retail and whole sale income every month on 20th while i am uploading numbers for sales tax. Should i add my income as consultant in to the sales tax or just don't do anything till end of the year and inform it as 1099 ?
Submitted: 1 year ago.
Category: Tax
Expert:  USTaxAdvising replied 1 year ago.
Hello,
Generally speaking consulting services are not taxed as a "sales" tax, only goods/materials are generally taxed as a sales tax.
I would believe that the consulting income should not be included in your sales tax returns.
I hope that helps. Please let me know if you have any follow up questions on anything and I will get back to you as soon as I can.
Best regards
Customer: replied 1 year ago.
Hello sir, You would believe or you are sure about that info? because i believe it should not be there but i am not a cpa:) this is why i want to ask over here.
Customer: replied 1 year ago.
And yeah i don't sell any product only intellectual level . We consult on operation .
Expert:  USTaxAdvising replied 1 year ago.
Where are you located and what is the sales tax return jurisdiction? (i.e. what county or city and state?)
best
Customer: replied 1 year ago.
Texas, san antonio, bexar county, should i call the sales tax people and ask them? that would be more accurate?
Expert:  USTaxAdvising replied 1 year ago.
Hello,
Yes that would be most accurate. Here is some information I found during my research for Texas.
"Texas imposes a state sales tax on all retail sales, leases and rentals of most goods, as well as taxable services. Texas cities, counties, transit authorities and special purpose districts have the option of imposing an additional local sales tax for a combined state and local tax rate of up to 8 1/4% (.0825)." http://comptroller.texas.gov/taxinfo/sales/index.html
Based on the following link - http://comptroller.texas.gov/taxinfo/taxpubs/tx96_259.pdf it appears that most services are taxable and should be included.
Based on the research above I believe the amount should be included in your sales tax return. To confirm I would suggest calling the Sales tax people at 1-***-***-****.
best regards,
Customer: replied 1 year ago.
Yeah i am confused now. i will call them tomorrow morning
Expert:  USTaxAdvising replied 1 year ago.
Ok - sorry it became a bit confusing. Most states don't tax service income as "sales tax".
It appears from my research that Texas does in fact require service income to be included in sales tax computations.
Let me know if I can assist with anything further and I will get back to you as soon as I can.
Best regards