BIR Ruling

February 25, 1970 Mr. Candido D. Serrano c/o Swedish Motors Sales, Inc. 345 Quezon Blvd. Extension Quezon City S i r : This refers to your letter dated February 18, 1970 requesting information as to what other internal revenue taxes, if any, your client will have to pay aside from the 7% advance sales tax on its importations of trucks and truck spare parts. It was verbally explained that your client is engaged in the business of importing truck spare parts which it assembles into complete trucks for sale to the public. In reply, I have the honor to inform you that under the foregoing circumstances, your client is a truck assembler. Consequently, aside from the 7% advance sales tax it pays on its importations of truck spare parts before the same are released from customs custody, its sales of completely assembled trucks is subject to the 7% sales tax imposed in Section 186 of the Tax Code. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue