Tenn. Comp. R. & Regs. 1320-05-01-.25 - FINANCE CHARGES - CARRYING CHARGES

(1) Finance charges, carrying charges, time price differential, or interest from credit extended on sales of tangible personal property under conditional sale contracts or other contracts providing for deferred payments of the purchase price are not considered a part of the selling price of such property and are not subject to Sales Tax if the amount of such finance charges, carrying charges, time price differential, or interest is in addition to the usual or established case selling price, and:

(a) Is segregated on the taxpayer's invoice or bill of sale, or

(b) Is billed separately to customers.

(2) Unless these conditions are met, such charges shall be deemed to be part of the selling price for the purpose of computing the tax.

Notes

Tenn. Comp. R. & Regs. 1320-05-01-.25

Original rule certified June 7, 1974.

Authority: T.C.A. §§ 67-1-102 and 67-6-402.