by him as compensation for his services before remitting to his principal and any commission paid to him after remittance to the principal by the agent or the customer or the client.
No deduction from gross receipts may be taken by the principal for commissions paid to, or withheld by, the agent. A manufacturer's representative is taxable on his gross commissions unless his relationship to his principal is that of employer and employee.
Undisclosed principal. A person selling property, including real property, or rendering services, for an unknown or undisclosed principal, is subject to tax as a principal, unless there is disclosed in the agent's return the identity of the principal and amount of the sale made on his behalf.
Conditions as to recognition of agency. A person will be regarded as acting as agent or broker in promoting or soliciting sales or rendering services for the account of a principal only when it appears:
That the contract or agreement between such persons clearly established the relationship of principal and agent;
That books and records of the agent or broker show the name of the actual owner of the property on whose behalf the sale is made;
That the credit risk is assumed by the actual owner of the property; and
That the books and records of the agent or broker show the amount of gross sales and the amount of commission due thereon.
Collections by agent. Money or property received by a taxpayer, as agent, for transmittal to a third party is not to be reported by such taxpayer as gross receipt, but any commission received by him for his services as agent must be included in gross receipts.
SECTION 312. PERSONS ERECTING BUILDINGS OR OTHERWISE ALTERING, REPAIRING OR IMPROVING PROPERTY.
General. A general contractor or subcontractor, resident or nonresident, engaged in Philadelphia in the business of erecting buildings, or otherwise altering, repairing or improving real property, is required to report as gross receipts all receipts derived from the performance of such contracts. The amount of receipts to be included in the tax base shall be the full contract price, that is, the total amount received or receivable by way of a fixed determinable amount under the terms of the contract. The contract price will be considered to include all charges made by a general contractor, or subcontractor, for materials, labor, supervision, overhead costs and profits and also any payments made directly by the owner for materials, labor or other obligations for which the contractor becomes liable in the performance of the contract. In the case of a general contractor, no deduction may be made with respect to amounts paid to subcontractors and materialmen.
Cost-plus contracts. A general contractor performing contracts an the basis of "cost-plus-a- fixed-fee" or "cost-plus-a-percentage" or "construction management" is required to report as gross receipts the full contract price as provided in subsection 312(1), unless the owner of the property and/or the general contractor, acting pursuant to authorization by the owner, purchases the materials, or hires all labor or engages all subcontractors, and the owner (a) pledges his credit