BIR Ruling

November 28, 1977 Imported Yamaha Electric Pianos, Subject to 40% Sales Tax This refers to your letter dated November 23, 1977 requesting clarification as to the proper rate of advance sales tax applicable to imported Yamaha electric pianos. It is represented that Yamaha electronic pianos are equipped with electrical sound pick-up and amplifying devices and the sound generated electrically or electronically; that they are not equipped with strings and hammer assemblies; that without the various electronics devices, the instrument cannot be operated or played like conventional pianos; and that Yamaha electric pianos are not locally manufactured. In reply thereto, please be informed that pianos are subject to the 40% sales tax under Section 196(e) [formerly Section 185-(g)] of the tax Code of 177. Accordingly, the imported Yamaha electric pianos are subject to 40% advance sales tax, the tax to be based on the landed cost thereof plus 50% mark-up pursuant to Section 196 (formerly Section 185) in relation to Section 193(b) [formerly Section 183(b)], both of the Tax Code of 1977. cdtai