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Lev
Lev, Tax Advisor
Category: Tax
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Experience:  Taxes, Immigration, Labor Relations
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Can business in Indiana refuse to refund sale tax on purchase

Customer Question

Can business in Indiana refuse to refund sale tax on purchase returned?
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
Please see here http://www.in.gov/legislative/iac/20131030-IR-045130474NRA.xml.htmlTaxpayer argues that it is not required to pay sales tax – or self-assess use tax – on the purchase of certain items of equipment because the items were purchased for resale to other retailers or were returned to the original vendor.... because IC § 6-2.5-3-2 imposes use tax on items which are stored, used, or consumed in Indiana - Taxpayer presented information which established that certain items acquired from its suppliers were returned to one of the suppliers for either a "credit" or refund. As such, the items were neither used, stored, nor consumed by Taxpayer, and the initial acquisition of the items were not subject to use tax.Thus sales tax originally charges were REFUNDED.So far the seller must refund sales tax on purchases that were returned either for refund or for credit.