The Indiana Department of Revenue has re-released sales tax Information Bulletin #60, which clarifies definitions and applicability of sales and use taxes on transactions involving a construction contractor. Notably, the Bulletin clearly outlines when contractors are required to pay sales and use tax, and when they are required to charge sales and use tax. In addition, the bulletin clarifies the difference between a "time and materials" contract and a "lump-sum" contract for purpose of determining when a contractor should charge the final consumer tax under a construction contract.
Further information regarding the updates made in this new publication of Information Letter #60, can be found here.
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