The same principles apply in the case of sales of services for
resale. A sale of services where the seller knows or has reasonable
cause to believe will be resold is a sale for resale. Where, for
example, an establishment reconditions and repairs watches for retail
jewelers who resell the services to their own customers, the services
constitute a sale for resale. Where a garage repairs automobiles for a
secondhand automobile dealer with the knowledge or reasonable cause to
believe that the automobile on which the work is performed will be sold,
the service performed by the garage is a sale for resale. The services
performed by a dental laboratory in the making of artificial teeth for
the dentist for the use of his patients is a sale of services (as well
as of goods) for resale. The services of a fur repair and storage
establishment performed for other establishments who sell these services
to their own customers, constitute sales for resale. As in the case of
the sale of goods, in certain circumstances, sales of services to a
business for a specific use in performing a different service which such
business renders to its own customers are in economic effect sales for
resale as a part of the service that the purchaser in turn sells to his
customers, even though such services are consumed in the process of
performance of the latter service. For example, if a storage
establishment uses mothproofing services in order to render satisfactory
storage services for its customers, the sale of such mothproofing
services to that storage establishment will be considered a sale for
resale.
