BIR Ruling

June 18, 1973 The Alphs Commercial 830 Reina Regente St. Binondo, Manila Gentlemen : This refers to your letter dated June 7, 1973 requesting information as to the correct rates of advance sales tax applicable to your importation of electronic tubes. acd It is represented that the electronic tubes are of general application that is they can be used as parts of radio receiving sets, television and other electrical apparatus; and that the imported articles will be sold "as is". In reply, I have the honor to inform you that the rate of tax on imported electronic tubes or other articles considered parts or accessories of both radio receiving sets depends upon the destination thereof. Where the articles are imported for resale, as is, the same are invariably subject to the 7% advance sales tax. It being represented that the electronic tubes imported by you will be sold as is, the same are 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. cdtech Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue