Application of Sales Tax for Installment Sales
- Sales tax rates under Sections 184, 185, and 186 of the Code apply when articles are sold on installment terms.
- Installment terms must be at least twelve months to trigger this provision.
Basis for Sales Tax Computation
- The sales tax must be computed based on the cash price of the articles.
- Cash price is defined as the price offered for sale on a cash term to the public.
- This price must not include any discounts or rebates during the taxable period.
Effectivity of the Law
- The amendment takes effect immediately upon approval.
- Ensures proper taxation of installment sales at a basis reflecting the full cash price.
Important Legal Concepts
- Clarifies that the tax base for sales on installment is the full cash price, not the amount collected in installments.
- Prevents tax avoidance through discounting installment sales prices.
- Ensures uniform application of sales tax rates regardless of payment terms.