Section 1320-05-01-.78 - EXEMPTION CERTIFICATE(1) Dealers making sales of tangible personal property and furnishing services that are subject to the Sales Tax to vendees exempt from payment of the Sales and Use Tax shall obtain and keep, as a part of their books and records, appropriate exemption certificates. Dealers shall likewise obtain and keep, as a part of their records, appropriate exemption certificates for sales of tangible personal property which is not specifically exempt from the Sales or Use Tax, but which may be used in a manner that will exempt it from the Sales or Use Tax. Such exemption certificates shall be maintained in the establishment of the dealer making such sales, and shall be available for inspection and comparison with the Sales or Use Tax return upon which any deduction is made from gross sales.(2) All sales for which an exemption has been claimed, but which are not supported by exemption certificates, will be deemed retail sales, and the dealer will be held liable for the Sales or Use Tax due thereon.Tenn. Comp. R. & Regs. 1320-05-01-.78
Original rule certified June 7, 1974.Authority: T.C.A. §§ 67-1-102 and 67-6-402.