BIR Ruling
BIR Ruling • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Jul 30, 1969
Full text
July 30, 1969 Transrite Philippines, Inc. Suite 419-420 Lopez Bldg. Aduana St., Intramuros Manila Attention: Mr . Lauro A . Villanueva Gentlemen : This refers to your letter dated July 25, 1969 requesting in effect information as to the rate of advance sales tax due on imported Electric Starting Capacitor of the sample submitted. LibLex It is represented that the Electric Starting Capacitor is used in electric motors which operate on torque system; that the purpose is to reduce current interference; that the article has the inherent property of an electric circuit that opposes a change in voltage otherwise known as "Capacitance"; and that it has also the property of a circuit whereby electric energy may be stored in an electro-static field. In short, it is an electric contrivance with multiple uses. In reply, I have the honor to inform you that under the foregoing circumstances, the imported electric starting capacitor is subject to the 7% advance sales tax based on the landed cost thereof plus 25% mark-up pursuant to Section 183(b) in relation to Section 186, both of the Tax Code. cdll Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue
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