BIR Ruling

May 20, 1969 The General Shipping Co., Inc. Lopez (CBN) Bldg., Aduana St. Manila Attention: Mr . Jose G . Labung Fiscal Manager Gentlemen : This refers to your query which states: cd "As a shipping corporation engaged in the transportation of offshore and coastwise cargoes and passengers, we are collecting meal charges from passengers, to whom we issue complimentary tickets with which we attach our collector's receipt. However, upon arrival and liquidation of each voyage, we refund the corresponding meal charges to our Chief Steward who, on his own account, provides the meals to our passengers. "May we know if aside from the general corporate and business taxes required by the Revised National Internal Code, we are, by special revenue regulations, required to separately account for and pay a 'tax on our collections for meals served to our non-fare-paying passengers with complimentary tickets'." In reply, I have the honor to inform you that the said company is not liable for any tax on said meal charges. The Chief Steward, who, on his own account provides the meals to the passengers, a service distinct and separate from your business as a common carrier, is constituted a caterer subject to a fixed annual tax of P20.00 and the 3% tax on his gross receipts realized from said activity pursuant to Sections 182(A)(1) and Section 191, respectively, of the Tax Code. aisadc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue