BIR Ruling

March 16, 1977 Taxability of manufactured product . This refers to your letter dated December 28, 1976 requesting that WXY Manufacturing Corporation, patent owner and manufacturer of the trade brands POGI and GANDA Medicated Pomades be formally placed on our record as the firm-recipient of BIR Ruling No. 66-033 subjecting medicated pomades to the 7% sales tax under Section 186 of the Tax Code in place of its previous corporate name of INCORPORATED. It is stated in your letter that the corporate life of QRT Inc. was shortened to October 31, 1971; that in its place, WXY Manufacturing Corporation was organized to take over the entire liabilities and assets of its predecessor, QRT Inc.; that the principal family controlling stockholders and management officials of WXY Manufacturing Corporation are substantially the same as its former organization, QRT Inc. In reply, I have the honor to inform you that inasmuch as the pomade products, namely: Pogi and Ganda of QRT, Inc., your predecessor were considered by this Office to be medicated and, therefore, subject only to the 7% sales tax under Section 186 of the Tax Code, the same pomade products manufactured by that firm remain subject to the 7% sales tax. cda