Revenue Ruling 68-463
Headnote
Sales of separate parts of ammunition are not subject to the manufacturers tax; however, sales of complete shells and cartridges, even though in a knock-down condition, are subject to tax; S.T. 561 superseded.
ISSUE
The manufacturers excise tax imposed upon sales of shells and cartridges by section 4181 of the Internal Revenue Code of 1954 does not apply to sales of separate parts of ammunition such as cartridge cases, primers, bullets, and powder.LAW AND ANALYSIS
However, in accordance with the provisions of section 48.4181-1(a)(2) of the Manufacturers and Retailers Excise Tax Regulations, the tax imposed by section 4181 of the Code does apply to sales of complete shells and cartridges or to sales of such articles which, although in a knock-down condition, are complete as to all component parts.EFFECT ON OTHER DOCUMENTS
S.T. 561, C.B. XI-2, 483 (1932), is hereby superseded, since the position set forth therein is restated under current law in this Revenue Ruling.Footnotes
- Prepared pursuant to Rev. Proc. 67-6, C.B. 1967-1, 576.