A. In completing the sales tax return, you must enter the gross receipts on Lines 1-3 without the amount collected for tax. If you include sales tax in the sales price of the goods or services that you sell, you must use this alternative method to determine amounts for Lines 1, 2, and 3
Step 1: Deduct the total of all exempt sales from gross receipts.
Column 1 - For receipts subject to the 6.35% tax rate, multiply the remaining balance by 94%.
Column 2 - For receipts subject to the 7% tax rate, multiply the remaining balance by 93.5%Column 3 liabilities, - For receipts subject to the 9.35% tax rate, multiply the remaining balance by 91.5%.
Step 3: Add back the amount subtracted for exempt sales.
Step 4: Enter total on applicable gross receipts line (Line 1, 2, or 3) and the applicable Column (Column 1,2, or 3).
This answer is intended to provide general information concerning a frequently asked question about a current position, policy, or practice associated with the taxes administered by the Connecticut Department of Revenue Services. It may include an informal interpretation of Connecticut tax law by the Department of Revenue Services (DRS). However, it is not intended to serve as a legal ruling.