Rules & Regulations of the State of Tennessee
Title 1320 - Revenue
Subtitle 1320-04 - Miscellaneous Tax Division
Chapter 1320-04-05 - Business Tax Rules and Regulations
Section 1320-04-05-.12 - DEDUCTIONS FROM GROSS SALES

Universal Citation: TN Comp Rules and Regs 1320-04-05-.12

Current through September 24, 2024

(1) Amounts representing the following transactions may be deducted from gross sales, prior to computing tax liability, provided such amounts have been included in the gross sales reported on the business tax returns:

(a) Cash discounts allowed and taken by customers on sales. (See Rule 1320-04-05-.04)

(b) Returned merchandise or allowances or credits given to customers for specific sales. (See Rule 1320-04-05-.45)

(c) Trade- ins. (See Rule 1320-04-05-.54)

(d) Repossession to the extent allowed. (See Rule 1320-04-05-.44)

(e) Contractor payments to subcontractors. (See Rule 1320-04-05-.09(2))

(f) Sales in bona fide interstate commerce. (See Rule 1320-04-05-.33(2))

(g) Receipts for services rendered by nonprofit institutions and financial institutions and for accounting, insurance, and other services, all as provided for by law. (See Rule 1320-04-05-.16 and 1320-04-05-.32)

(h) Accommodation and casual and isolated sales. (See Rules 1320-04-05-.01 and 1320-04-05-.05)

(i) Bad debts arising from receipts on which the business tax is imposed and paid as provided for by law.

(j) Any other deductions authorized by the Business Tax Act or by rules and regulations pertaining thereto.

(2) Except as indicated in paragraph (1) of this rule, and as may otherwise be allowed by law, no other amounts attributable to any other transactions may be deducted from gross sales.

(3) Any person claiming deductions from his gross sales must maintain sufficient invoices and other documents to substantiate his claims; otherwise, the deduction will not be allowed.

Authority: T.C.A. §§ 67-1-102, 67-4-703, 67-4-711.

Disclaimer: These regulations may not be the most recent version. Tennessee may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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