TAXATION RULING NO. ST 2295

ST 2295

SALES TAX : TWO PART EPOXY RESIN SEALANT FOR USE IN THE BUILDING INDUSTRY

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FOI status:

PREAMBLE

Sub-item 87(1) in the First Schedule to the Sales Tax (Exemptions and Classifications) Act exempts "compositions for application in a plastic condition so as to form the flooring of buildings, and materials for use in the construction in situ of flooring so formed and wrought into, so as to form part of, that flooring".

FACTS

2. As the name suggests, the particular product is made up of two components. When the components are mixed together they form a waterproofing compound.

3. The product is used in the building industry for watersealing concrete floors in shower recesses prior to the fixing of ceramic floor tiles. Its purpose is to prevent water seeping through concrete floors and rotting timber floor bearers or joists.

4. The two components are mixed on site to react with each other to form the watersealing compound. The compound is then applied in a pliable plastic condition by means of a paint scraper to the concrete floor. The sealer sets solidly on to the concrete floor, after which floor tiles are affixed with adhesive.

RULING

5. The product qualifies for exemption under sub-item 87(1) in the First Schedule.

COMMISSIONER OF TAXATION
24 October 1986

References

ATO references:
NO 86/8544-4
BO NEW STOT/2 383 697

Date of effect:
Immediate

Date original memo issued:
18.08.86

Subject References:
SEALANT
EPOXY RESIN

Legislative References:
SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT; ITEM 87, FIRST SCHEDULE