[Code of Federal Regulations]
[Title 26, Volume 16]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR48.4216(e)-3]

[Page 161]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 48_MANUFACTURERS AND RETAILERS EXCISE TAXES--Table of Contents
 
     Subpart M_Special Provisions Applicable to Manufacturers Taxes
 
Sec. 48.4216(e)-3  No exclusion or readjustment for other advertising 
charges or reimbursements.

    (a) Exclusions from price. No exclusion in computing the taxable 
price of any article sold by the manufacturer may be allowed in respect 
of any charge for advertising if, and to the extent that, such charge:
    (1) Is for advertising which does not qualify as local advertising 
within the meaning of section 4216(e)(4) and paragraphs (a) and (b) of 
Sec. 48.4216(e)-1, or
    (2) Does not satisfy all of the conditions and limitations stated in 
section 4216(e)(1) and paragraph (c) of Sec. 48.4216(e)-1.
    (b) Readjustments of price. No credit or refund under section 
6416(b)(1) may be allowed in respect of any amount which was included in 
the taxable price of an article sold by the manufacturer and which was 
later paid by him to his vendee in reimbursement of costs incurred for 
advertising, if, and to the extent that, the amount so paid:
    (1) Is for advertising which does not qualify as local advertising 
within the meaning of section 4216(e)(4) and paragraph (b) of Sec. 
48.4216(e)-1, or
    (2) Is not within the limitation provided in section 4216(e)(2), as 
computed in accordance with Sec. 48.4216(e)-2, as of the close of the 
calendar quarter in which the amount is so paid over or as of the close 
of any subsequent calendar quarter in the same calendar year. See, 
however, paragraph (c)(2)(ii) of Sec. 48.6416(b)-1, relating to 
redetermination of price readjustments in cases where local advertising 
charges excluded from taxable price in one calendar year become taxable 
as of May 1 of the following calendar year.

[T.D. 6686, 28 FR 11411, Oct. 24, 1963. Redesignated and amended by T.D. 
7536, 43 FR 13521, Mar. 31, 1978]