BIR Ruling

September 28, 1970 Mr. Sotero T. Segui & Co. Certified Public Accountants 10 North Lawin Philamlife Houses Quezon City Gentlemen : This refers to your letter dated September 3, 1970 requesting information as to whether or not the minimum monthly gross receipts provided in the second paragraph of Section 192 of the Tax Code, as amended by Republic Act No. 6110 include the drivers' salaries and gasoline expenses. In reply, I have the honor to inform you that for purposes of the 2% tax imposed in Section 192 of the Tax Code, as amended the gross receipts of common carriers consist of the total amount of earnings derived from the operation of their rolling stocks without any deduction. These gross receipts consist therefore, of the amounts representing the so-called boundary (for those operating under the boundary system), the earnings of the drivers, expenses for gasoline, and other expenses taken from the total earnings derived in the operation of the rolling stocks. (See BIR Ruling Nos. 66-050; and 70-018). cdti Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue