BIR Ruling

August 8, 1969 Meralco Securities Industrial Corporation Lopez Administration Bldg. Ortigas Avenue Pasig, Rizal D-721 Attention: Mr . Oscar J . Ledesma, Jr . Comptroller Gentlemen : This refers to your letter dated July 31, 1969 requesting information as to whether or not Meralco Securities Industrial Corporation, a corporation engaged in the transportation through pipeline of fuel oil belonging to third parties, is required to submit a record of inventory within 30 days after the close of its accounting period under Section 13 of the Bookkeeping Regulations. In reply, I have the honor to inform you that considering that Meralco Securities Industrial Corporation is admittedly a service corporation then it must be subject to internal revenue taxes on business. And inasmuch as Section 13 of the Bookkeeping Regulations provides that all persons required by law to pay internal revenue taxes on business shall keep, in addition to the other books and records prescribed in the regulations, a book of inventories, in which they shall record in detail the quantity, description, unit and total cots of every item of their stock-in-trade, materials, supplies and other goods found in the premises of their establishments at the time they start business and at the close of the calendar year or accounting period, you are required to submit to this Bureau the required inventory. You are given ten (10) days from receipt hereof to file your inventory with the Office of the Revenue district Officer at Pasig, Rizal without penalty. llcd Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue