Step-By-Step Instructions For Form St-501 (Page 3 of 4) in pdf

See ST-389 instruction for additional information if local taxes are applicable.

You are required to maintain records that will support all deductions claimed on this return. A further explanation of deductions is

available by obtaining a copy of the South Carolina Sales and Use Tax Code of Laws by contacting the Department’s Main

Office, the Taxpayer Service Centers or visit our website: and Policy

Line 5 Total Amount of Deductions:

Enter total of Column B here and on line 2 on front of ST-501.

Line 6 Net Sales and Purchases:

Line 3 minus line 5 should agree with line 3 on front of ST-501.

CALCULATION OF 6% SALES AND USE TAX ON FRONT OF ST-501

STEP 2

IMPORTANT: If it is determined that no entry is needed on a line, PLEASE LEAVE LINE BLANK. Do not write on the lines that do not

pertain to you.

Line 1 Gross Proceeds of Sales, Rentals and Withdrawals for Own Use: Enter the gross proceeds of sales, leases and/or rentals of

tangible personal property, withdrawals, and purchases subject to use tax. Do not include sales of durable medical equipment and

related supplies. Enter the total from line 3 of your worksheet. Do not include sales tax collected in this amount.

Line 2 Total Amount of Deductions: Enter the total amount of deductions from line 5 of your worksheet (reverse side of your return).

Line 3 Net Taxable Sales: Subtract line 2 from line 1.

Line 4 Tax: Multiply line 3 x 6% (.06).

Line 5 Taxpayer's Discount: A taxpayer's discount may be claimed when the return is filed and the tax due is paid in full on or before

the due date of the return. No discount is allowed if the return or payment is received after the due date.

The discount rate is determined as follows:

If your combined tax liability (line 4 and line 12, ST-501, and line 2, Column B page 7 of 8 of ST-389) is less than $100, the discount rate

is 3% (.03) of line 4. If the total is $100 or more, the discount rate is 2% (.02) of line 4. Deduct this amount from line 4.

Note: Discounts are not allowed to exceed $3,000 per taxpayer (for all locations) during any one South Carolina fiscal year, which

covers payments made from July 1 through June 30. This includes all returns which become due during this period (returns for June

through May). The $3,000 maximum includes the total discounts for sales/use, Durable Medical Equipment and Related Supplies, and

local taxes. Taxpayers who file and pay electronically are allowed a $3,100 maximum discount. The discount amount is $10,000 for

out-of-state retailers who cannot be required to register for sales and use tax but who voluntarily register to collect and remit the tax.

However you must receive prior approval from the Department of Revenue for the $10,000 discount.

Line 6 Sales and Use Tax Net Amount Payable: Line 4 minus 5.

Line 7 Penalty and Interest:

Enter the total of penalty and interest from calculations below or visit our website: >Penalty and Interest Calculator

PENALTY FOR FAILURE TO FILE A RETURN: Five percent (.05) of the amount of tax due (from line 4 on the front of the return) for

each month or fraction of a month of delinquency, not to exceed twenty-five percent (.25) of the amount of tax due.

PENALTY FOR FAILURE TO PAY TAX DUE: The penalty is one-half of one percent (.005) of the amount of tax due (the total of line 4

on the front of the return) for each month or fraction of a month of delinquency, not to exceed a total of twenty-five percent (.25) of the

amount of tax due. The penalty for failure to file and pay must be combined and entered as a total on line 7.

INTEREST: Interest is assessed in accordance with Sections 6621 and 6622 of the Internal Revenue Code. Rates are based on the

prime rate, subject to change quarterly and are compounded daily.

Line 8 Total Sales and Use Tax: Enter the total of lines 6 and 7.

COMPLETING THE DURABLE MEDICAL EQUIPMENT AND RELATED SUPPLIES WORKSHEET #2

STEP 3

This section is used for reporting Sales Tax on durable medical equipment and related supplies items.

As defined under federal and state Medicaid and Medicare laws.

Which is paid directly by funds of this State or the United States under the Medicaid or Medicare programs, where state or

federal law or regulation authoring the payment prohibits the payment of the sales or use tax; and

Sold by a provider who holds a South Carolina retail sales license and whose principal place of business is located in this State.

If the above conditions apply, continue with instructions on line 7. If the conditions do not apply, go to step 5.

Line 7 Gross Proceeds of Sales from the Sale of Durable Medical Equipment and Related Supplies: Enter gross proceeds of sales

from the sale of durable medical equipment and related supplies. Enter here and on line 9 on the front of the return. If the local tax is

applicable, combine line 7 with amount on line 3 and enter total on line 1 of the ST-389 (Local Sales Tax Worksheet).

Step-By-Step Instructions For Form St-501 Page 3

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