BIR Ruling

December 14, 1971 Messrs. Sycip Gorres, Velayo & Co. Certified Public Accountants P. O. Box 589 Manila Attention: Mr . M . Gutierrez Tax Division Gentlemen : This refers to your letter dated January 6, 1971 requesting that your client, United Milk Products, Inc., be authorized to bill as a separate item in its sales invoices issued to its customers only the estimate of the 7% sales tax.. It is represented that the manufacture of your client's products (Magnolia full cream reconstituted evaporated and condensed milk) involves intricate process, making it very difficult to bill on the sales invoice the exact 7% manufacturer's sales tax since the actual cost of raw materials used in the manufacture of the products sold cannot be definitely ascertained; and that the total amount of sales tax due on the monthly sales can be known at the end of the month after determining the actual cost of materials that went into the manufacture of the finished products sold. casia In reply, I have the honor to inform you that for the foregoing circumstances your request is hereby granted, provided that if the estimated sales tax billed is less than the actual sales tax, the actual sales tax shall be paid; and if the estimated sales tax billed is greater than the actual sales tax, the sales tax billed shall be paid to this Office. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue