Returned Merchandise And Allowances

In the event a person subject to the Business Tax gives credit to a customer for tangible personal property voluntarily returned to him or gives a credit or allowance to a customer as an adjustment or otherwise with respect to a specific sale, whether or not the property is returned, the amount of credit or allowance actually given or credited to the customer's account may be deducted from the gross sales subject to the Business Tax. Authority: T.C.A. §§ 67-5822 and Section 67-101. Administrative History: Original rule certified June 7, 1974. 1320-04-05.46 SALES BY OUT-OF-STATE VENDOR. Sales of tangible personal property or services made by a Tennessee dealer to an out-of state vendor who directs that the dealer act as his agent to deliver or ship such property or services to his customer in Tennessee shall be deemed to be a sale by the Tennessee vendor and subject to the Business Tax.