BIR Ruling

February 29, 1972 Action Line c/o The Manila Times P. O. Box 775 Manila S i r : This refers to the letter dated January 12, 1972 of Mr. Fernando B. Duque of 17 Sanciangco St. Tonsuya, Malabon, Rizal requesting information as to whether or not a petroleum dealer (company) is subject to the contractor's tax under Section 191 of the Tax Code; and as to whether or not its non-payment will subject the oil company to payment of penalties and to what extent. In reply, I have the honor to inform you that the petroleum dealer (company) is subject to the graduated annual fixed tax imposed in Section 182(A)(2) of the Tax Code. As such dealer, it is not subject to the 3% contractor's tax imposed in Section 191 of the Tax Code. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue