BIR Ruling

September 10, 1976 The Managing Director Precision Electronics Corporation 31 San Luis Street Pasay City S i r : This refers to your letter, requesting confirmation that the "cloth dryer" which you plan to manufacture is subject to sales tax at the rate of 7% only, considering that it is not among those enumerated in Section 185 of the Tax Code. It is represented that the "cloth dryer"' will be separately manufactured by the corporation; that it is not a part of the washing machine presently being manufactured by it; and that in fact, the Board of Investments (BOI) advised it to file a separate application for the manufacture of "cloth dryer",indicating that the BOI considers the "cloth dryer",which the corporation is planning to manufacture, an article distinct and separate from the washing machine which the said corporation is presently manufacturing. In reply, I have the honor to inform you that it appearing from the brochure submitted by you that the "'cloth dryer" which your corporation plans to manufacture is an article separate and distinct from the washing machine which the corporation is presently manufacturing, and considering that a "cloth dryer" is not among the articles enumerated in Sections 184 and 185 of the Tax Code, the gross sales of said article shall be subject to the 7% sales tax imposed by Section 185 of the Tax Code. Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE B.I.R."