[Code of Federal Regulations]
[Title 27, Volume 1]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 27CFR53.102]

[Page 893]
 
            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
 
 CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE 
                                TREASURY
 
PART 53--MANUFACTURERS EXCISE TAXES--FIREARMS AND AMMUNITION--Table of Contents
 
     Subpart J--Special Provisions Applicable to Manufacturers Taxes
 
Sec. 53.102  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) of the Code and paragraphs (a) 
and (b) of Sec. 53.100, or
    (2) Does not satisfy all of the conditions and limitations stated in 
section 4216(e)(1) of the Code and paragraph (c) of Sec. 53.100.
    (b) Readjustments of price. No credit or refund under section 
6416(b)(1) of the Code 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) of the Code and paragraph (b) 
of Sec. 53.100, or
    (2) Is not within the limitation provided in section 4216(e)(2) of 
the Code, as computed in accordance with Sec. 53.101, 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, Sec. 53.175, 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. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-312, 56 
FR 31084, July 9, 1991]