BIR Ruling

April 7, 1972 Joaquin Cunanan & Co. Certified Public Accountants P. O. Box 2288 Manila Gentlemen : This refers to your letter dated August 12, 1968 requesting confirmation that the products of your client, Bristol-Myers Company namely, Vitalis Medicated Hair Groom Gel and Vitalis Medicated Groom Liquid be subjected only to the 7% sales tax under Section 186 of the Tax Code as medicated preparations. Among the evidence submitted in support of your request that the aforecited products should be subjected to only 7% sales tax are: (1) A certification by the Administrator, Food and Drug Administration that Vitalis Medicated Hair Groom Gel and Vitalis Medicated Hair Groom Liquid are antibacterial and antifungal medicinal preparations that relieve and prevent dry, itchy scalp and dandruff; and (2) literatures which contain sufficient proofs that the products in question are medicinal preparation on the basis of their composition. In view thereof, this Office believes as it hereby holds that Vitalis Medicated Hair Groom Gel and Vitalis Medicated Hair Groom Liquid are subject only to the 7% sales tax prescribed in Section 186 of the Tax Code, as amended by Republic Act No. 6110. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue