On Mon, 04 Aug 2003 14:06:04 GMT, "rAD" wrote:


"Jim Turner" wrote in message
ws.com...
On Mon, 04 Aug 2003 05:44:48 GMT, "rAD" wrote:

I haven't tried this, but suppose you have the customer order the parts
with
THEIR credit card? Then only charge them for assembly. Technically, you
didn't sell them any hardware at all.


Depends on the state you live in. Some tax labor. If you don't sell
them the parts, then you don't make any profit on the parts.

God you guys are thick. I KNOW services are taxable. But the bulk of the
value in a computer you build is in the hardware purchased, not in YOUR
labor. So you could reduce the taxable amount from say $1000 down to $100 if
you make the customer purchase the parts from the supplier on the Net. And
whether you charge them a markup on the parts or just strictly charge them
for your time is irrelevant. It amounts to the same thing if the amount
charged is the same.

The snag here is that people are usually tight-fisted and don't want to pay
you until the computer is up and running perfectly.


Okay the thick one will try and explain it to you AGAIN, (1) They buy
the parts,BRING them to you to assemble,you charge for assembly
ONLY,you tax your service ONLY. (2) They buy the parts, bring them to
you to assemble,you charge a markup and service,YOU TAX THE WHOLE
THING. If you charge a markup you are in essence selling them the
parts. Only other way around it is beef up the service charge for you
books and don't list any markup. Legally it any parts are shipped to
your business that relate to your business whether for personal use or
resale,the business is required to pay the sales tax.