BIR Ruling

April 20, 1976 Mr. Romeo S. Rojas President Kolor Industries, Inc. P. O. Box 90, Quezon City S i r : This refers to your letter dated March 22, 1976, requesting confirmation of our ruling dated October 26, 1971 holding that the chemical impregnating compound which you will use in the manufacture of "car-freshener" is subject to 7% advance sales tax, to be based on the total landed cost thereof, plus 25% mark-up. acd In reply, I have the honor to inform you that if, as represented, the so-called impregnating aromatic compound is the kind of raw material that is used in the manufacture of your product known as "car-refreshener" and is not for use in the manufacture of such toilet articles as perfumes, toilet waters, and the like, then said chemical impregnating compound is subject to 7% advance sales tax. This shall serve as authority to the Collector of Customs to release the shipment of impregnating aromatic compound which arrived on board SS Marchen Maersk upon payment of 7% advance sales tax, if, upon inspection, it shall be ascertained that said compound is the kind of substance use in the manufacture of "car-refreshener". cdi Very truly yours, CONRADO P. DIAZ Acting Commissioner of Internal Revenue TAN-1182-568-4 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."