[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: 27CFR53.93]

[Page 882]
 
            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. 53.93  Other items relating to tax on sale price.

    (a) Exchanges. If, in connection with the sale of an article subject 
to a tax imposed under chapter 32 of the Code on the price for which 
sold, a manufacturer receives from its vendee another article in 
exchange, the tax on the manufacturer's sale shall be computed on the 
basis of the amount allowed for the article received from the vendee, 
plus any additional amount charged the vendee.
    (b) Replacements under warranty. If an article, subject to a tax 
imposed under chapter 32 of the Code on the price for which sold, is 
returned to the manufacturer by reason of the failure of the article 
under a warranty as to its quality or service, and a new article is 
given by the manufacturer, free, or at a reduced price, the tax on the 
new article shall be computed on the actual amount, if any, to be paid 
to the manufacturer for the new article. See Sec. 53.174(b) for the 
circumstances under which the allowance made by the manufacturer, 
producer, or importer upon the return of the first article constitutes a 
price readjustment of the sale price of the first article and the 
extent, if any, to which a credit may be allowed, or refund made, of the 
tax paid by the manufacturer, producer, or importer on the sale of the 
first article.
    (c) Readjustments in sale price. Readjustment in sale price (such as 
allowable discounts, rebates, bonuses, etc.) cannot be anticipated. The 
tax must be based upon the original price unless the readjustments have 
actually been made prior to the close of the period for which the tax 
upon the sale is returned. However, if the price upon which the tax was 
computed is subsequently readjusted, credit may be taken against the tax 
due on a subsequent return or a claim for refund filed as provided by 
section 6416(b)(1) of the Code and Secs. 53.174-53.176.

[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-344, 58 
FR 40354, July 28, 1993]