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Texas Statutes (Last Updated: January 4, 2014) |
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TAX CODE |
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Title 2. STATE TAXATION |
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Subtitle E. SALES, EXCISE, AND USE TAXES |
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Chapter 151. LIMITED SALES, EXCISE, AND USE TAX |
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Subchapter H. EXEMPTIONS |
Sec. 151.346. INTERCORPORATE SERVICES
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(a) There are exempt from the taxes imposed by this chapter service transactions among affiliated entities, at least one of which is a corporation, that report their income to the Internal Revenue Service on a single consolidated return for the tax year in which the transaction occurs.
(b) For purposes of this section, "affiliated entity" includes an entity that would be classified as a member of an affiliated group under 26 U.S.C. Section 1504 but for the exclusions provided by that section.
(c) An exemption authorized by this section does not apply to a service that would have been taxable under this chapter as it existed on September 1, 1987.
(d) Services that are exempt under this section may not be purchased for resale by the providing company.
(e) Tangible personal property that is transferred as an integral part of a service exempted under this section may not be purchased for resale by the providing company.