BIR Ruling

May 11, 1973 The Manager Ever Royal Commercial 869 Tabora St., Binondo Manila S i r : This refers to your letter dated April 2, 1973 requesting the lifting of the limitations provided for in your permit to use a cash register machine (Model 51-17-1-5 (CDX) 1 1PK-1-11K Standard, with Serial No. 5436740) in your store to sales not exceeding P49.99. In effect, your request that you be exempted from the requirement prescribed in Section 204 of the Tax Code that in case of sales in the amount of P50.00 or more, the invoices or receipts shall further show the name of style, if any; and business address of the purchasers. cdta In reply, I have the honor to inform you as follows: Section 204 of the Tax Code authorizes the Commissioner of Internal Revenue to exempt, in meritorious cases, any person subject to an internal revenue tax from compliance with the provisions thereof. It is stated in your letter that your firm deals with the sale of numerous products; that experience tells you that to issue hand written invoice when sales are P50.00 or more and to issue cash register receipt when sales are below P50.00 are confusing and complicated in your transactions; that every customer clamors for fast system of transaction and if you continue with your obsolete system of invoicing, you might loss many of your customers; that every sale, regardless of amount is recorded in your cash register machine in order to have accurate records and correct total volume of sales at the end of the day; and that to issue hand written invoice for sales of more than P49.99 together with cash register receipt will result in double work and double recording of your sales which can be avoided if you will be granted the privilege of exemption of Section 204 of the Tax Code. In view of the foregoing representations, this Office finds that your case is a meritorious case within the contemplation of the law and, therefore, hereby grants your request. Accordingly, you may effect individual sales thru the cash register machine without limitations as to value of purchases made. aisadc Very truly yours, (SGD.) CONRADO P. DIAZ Acting Commissioner of Internal Revenue