Evening star., 1937-09-10

y tfdtiOIis peIlDTIUlnR tf1e services usual
ly performed by trade associations ar,
exempted from the provisions of sait
title; provided. however, If any trad.
associations engaged in any busines.
other than the activities in which trade
associations usually engage, during tn.
period or periods covered by section {
of said title, the gross receipts from
such extraordinary activities or busi.
ness must be reported and the ia,
computed thereon.
SECTION 6.
Charitable Institutions. Etc.
(a) Corporations and any COM
munity chest fund or foundation or
ganized and operated exclusively for
religious, charitable, scientific. literary
or educational purposes, or for the
prevention of cruelty to children or
animals. no part Of the net earnings
of which inures to any private share
holder or individual, and no substan-
tial part of the activities of which is
carried on for propaganda or other
wise attempting to influence legisla-
ton, are exempted from the provisions
of said title.
(b) Receipts of educational institu-
tions hospitals and the other institu-
tlons mentioned in the paragraph (s)
OF this section. organized or operated
for gain or profit must be reported and
the tax computed thereon.
SECTION :.
Brokers, Commission Merchants, At
torneys and Agents.
ta) Within the meaning of said
title the term broker" means anv
person why buys, sells, procures. dis
poses of or deals in for the account
OF any other person real estate. money.
insurance, credits, commercial paper.
bonds, notes, securities, stocks and
monetary metals; but shall not IN
clude an employe or any person who
receives commission by way of COM
pensation for services performed for
his employer. Gross receipts of brok-
ers are limited to and shall include
only gross commissions received, the
gross trading profit on securities
bought and sold, and the gross interest
income on marginal accounts from
business done or arising in the Dis
trict of Columbia, rs the case may be.
(b) Within the meaning of said
title the term commission merchant"
means a person engaged in the busi-
ness of selling goods or merchandise
consigned or delivered to him by or
for his principal for a commission as
compensation; and such terms include
such persons who sell for a commits
sion goods and merchandise or other
commodities not actually delivered
into their possession, and who are
commonly known as, or called, COM
modify or merchandise brokers. Gross
receipts Of commission merchants as
defined herein are limited to and shall
include their gross commission only
The term commission merchant"
shall also include, where the assessor
shall so determine as fact, dealers in
where the spread or diff
ference between the cost of goods sold
and the sale price is analogous to or
in the nature of commission, and
does not in any event exceed per
centum of the cost of goods sold,
and such determination of fact by the
assessor shall be final. Such dealers
in merchandise SO classified as COM
merchants may deduct from
the receipts from sales, the cost
thereof; such cost of goods sold to he
determined after considering the in
ventories both at the beginning and
at the end of the period covered by
the return; and such inventories TO
be valued at cost or market, whichever
is the lower, and to be in agreement
with the inventories as reflected by
the books of the taxpayer. There may
be included in the cost of goods sold
costs incurred in the acqui-
sition of the merchandise purchased:
but labor, salaries, wages or rent and
like costs shall not be considered as
an element Of such cost. The differ
ence between the cost of goods sold
and the sale price as herein specified
shall be the gross receipts under said
title and must be reported and the tax
computed thereon.
(c) The reports of gross receipts of
attorneys shall be limited TO and in
clude only gross fees for professional
services, whether cash or other assets,
but shall not include any money or
other asset received by attorneys as
reimbursement for expenses incurred
by them for or on behalf OF their
clients
(d) Within the meaning OF said
title the term agent means q person
who acts for or on behalf OF another
person for commission as compen-
sation, and who is not an employe Of
such person. An employe Is not an
agent within the meaning of said title.
The question as to whether q repre-
sentative is an agent or an employe
as herein defined will be close in
many instances, and will be decided
upon the facts of each case, but gen.
orally where the representative bears
the expense Of transacting the busi-
ness for which the representative is
TO be compensated by the principal,
such as payment of Office rent, salary
of clerks and other employees, trans