Tenn. Comp. R. & Regs. 1320-05-01-.40 - MANUFACTURERS AND PROCEDURES

(1) Materials and taxable services bought for future processing, manufacturing or conversion into articles of tangible personal properly for resale, where such materials become a component part of the finished products are not subject to Sales or Use Tax.

(2) Materials and supplies coming in direct contact with and which are consumed within twenty-five (25) consecutive calendar days, in the processing of manufactured products are not subject to the Sales or Use Tax. Unless materials and supplies come in direct contact with and are consumed within twenty-five (25) consecutive calendar days, they will not be considered as industrial materials or supplies exempt from the Sales or Use Tax. The time period, here indicated, shall apply to any single article in the solid state or to the contents of a container in which liquid is held for introduction for direct contact with the product being manufactured.

Notes

Tenn. Comp. R. & Regs. 1320-05-01-.40

Original rule certified June 7, 1974.

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