BIR Ruling

December 3, 1969 Messrs. Sycip, Gorres, Velayo & Co. 6760 Ayala Avenue Makati, Rizal Gentlemen : With reference to your letter dated December 2, 1969, I have the honor to inform you that the 3% contractor's tax even if shifted and billed as a separate item by the contractor in his invoice, the tax nonetheless forms part of his taxable receipts. In your illustration, for instance, viz.: Contract price P100.00 3% tax passed on to the customers 3.00 Total Billing P103.00 3% contractor's tax payable to the government P3.09 the taxable receipt is P103. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue