BIR Ruling

March 12, 1973 Miss Julia A. Amargo Certified Public Accountant 346 Pureza, Sta. Mesa Manila M a d a m : This refers to your letter dated March 7, 1973 requesting certification to the effect that BIR ruling dated September 22, 1966 issued in favor of your client, Tancho Corporation is still valid and existing. In said ruling, it was held, among others, viz: ". . . essential oil which is classified as taxable under Section 184(o) [now Section 184(b)] of the Tax Code is subject to 7% advance sales tax only if they are to be used by the importer thereof in the manufacture of pharmaceutical and other medicinal preparation. However, if they are for sale as such by the importer, they are subject to 50% (now 70%) advance sales tax even if the articles in question are subsequently used in the manufacture of articles subject to 7% sales tax. (BIR Ruling No. 98, S. 1965). "Inasmuch as according to your letter under reply the essential oil will be used as raw material in the production of pharmaceutical and other medicinal preparations, the same shall be subject to 7% advance sales tax." In reply, I have the honor to inform you that the foregoing ruling is still valid and existing, notwithstanding the amendments effected by Presidential Decree No. 69 to the Tax Code. cdta Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue