BIR Ruling

October 5, 1970 Mr. Virgilio E. Gumera 113 P. Jacinto St. Caloocan City S i r : This refers to your letter dated September 2, 1970 requesting opinion on the following: "'A' is a manufacturing company whose products are sold throughout the country by their 'wholesale peddlers'. These wholesale peddlers are under Surety Bonds. They do not receive salaries but only 'allowances' for meals, gasoline, oil and salaries of the drivers of the panel they are using in their trade. The panel is registered and owned by the company. "These 'wholesale peddlers' in getting goods from Company "A" do not pay the corresponding amount appearing in the sales invoices. Payments for whatever quantity they sold are liquidated after their sales in their-respective areas. Goods unsold by them are returned to the company. "All 'wholesale peddlers' of company 'A' cannot sell their goods beyond the price fixed by the company." In reply, I have the honor to inform you that under the foregoing circumstances, the so-called wholesale peddlers of Company "A" as hereinabove represented are commercial brokers within the purview of Section 194(t) of the Tax Code, as amended. Such being the case, they are subject to the P300.00 annual fixed tax Imposed in Section 182(A)(3)(bb) and to the 6% tax on their gross compensation pursuant to Section 195, respectively of the Tax Code, as amended by Republic Act No. 6110. cdta Very truly yours, CONRADO P. DIAZ Acting Commissioner of Internal Revenue