BIR Ruling

November 14, 1972 Luzon Brokerage Corporation P. O. Box 591 Manila Attention: Mr . C . O . Dimalanta, Jr . Manager, Import Department Gentlemen : This refers to your letter dated October 11, 1972 requesting information as to whether or not cost of repairs on articles shipped abroad for repairs and subsequently returned to the Philippines is subject to the compensating tax under Section 190 of the Tax Code. In reply, I have the honor to inform you that cost of repairs of an article sent abroad for repairs and the new parts used in the repair of such article by the repairer abroad are subject to the compensating tax imposed in Section 190 of the Tax Code. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue