BUILDING TRADE

Dominion, Volume 26, Issue 147, 17 March 1933, Page 18

BUILDING TRADE

Requirements in Payment of Sales Tax INVOLVED OBLIGATIONS The provisions of the law relating to the imposition of the sales tax on materials used in the building industry are set out in a letter written by the Comptroller of Customs, Dr. G. Craig, to one of the principals of a Wellington construction compa"it is not intended that sales tax should be charged upon the labour involved in the excavation work for the foundations of a building or, subject to the succeeding ■ paragraph of this letter, on the labour involved in the erection and completion of the building,” Dr. Craig says. “In the case of joinery and similar articles of wood, steel, etc., which arc frequently in the ordinary course of business made by independent manufacturers and sold to builders, it is intended that such articles should be charged with sales tax when they are made by builders in their own factories, and also if and whew they are embodied in the building, in the course of their construction. The position respecting materials when not exempt from sales tax, is that the tax is payable (inter alia) on: — , , , . . , “(a) Timber, cement, plaster materials, steel window sashes and roller shutters—tax payable according to the provisions of the sales tax legislation. “(b) Reinforcing steel —tax payable according to the provisions of the'sales tax legislation. The cost of labour expended on the job in bending and placing such steel in position would not be liable to tax, “(c) Structural steel and general ironwork, including joists, roof straps, rivets bolts, fabricated staichions. beams and connections — tax payable according to the provisions of the sales tax legislation. Tax would not be payable on the cost of labour involved in such work as riveting and erecting such goods on the 'i°“’(d) Joinery—tax is payable according to the sales tax legislation. The cost of fixing into the building finished articles such as wooden or steel window sashes would not be liable to sales tax. “(e) Concrete boxing for reinforced concrete —tax would be payable on the materials used in making such boxing according to the sales tax legislation. The cost of making such boxing, whether done off «r on the job, would, not be liaNe to sales ta “’(f) Fibrous plaster work—sales tax would be payable on the materials used in such work according to the sales tax legislation, but not on the cost of labour in fixing sheets, cornices, and mouldings on the job.” ' In conclusion the Comptroller states that it might later be necessary to review some of the above decisions, and that, if so, as much notice as possible would be given of the alterations.