BIR Ruling

April 3, 1968 Mr. Jose P. Ellis General Manager Rocel, Incorporated 63-B Buendia Avenue Makati, Rizal S i r : This refers to your letter dated March 19, 1968 requesting information as to the rate of advance sales tax due on imported Hot Beverage Dispenser known as the "Cafe Bar". In reply, I have the honor to inform you that as could be gleaned in the brochure submitted, and the uses to which it is adaptable, it is the opinion of this Office as it hereby holds that the imported Hot Beverage Dispenser known as the Cafe Bar falls within the purview of electric, gas or oil appliances of the type used for cooking, warming, or keeping warm food or beverage for consumption on the premises under Section 185(l) of the Tax Code. Such being the case, the same is subject to 30% advance sales tax based on the landed cost thereof plus 50% mark-up pursuant to Section 183(b) in relation to Section 185(i), both of the Tax Code. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue