BIR Ruling

December 17, 1975 Mr. Lope Angangco Suite 227 Shurdut Bldg. Intramuros Manila S i r : This refers to your letter dated November 3, 1975 requesting information as to the correct rate of advance sales tax applicable to the importation of your client, Western Bazaar of the Parker Ball Pen Desk Sets. cdt In reply, I have the honor to inform you that while fountain pens and ball pens are both used for writing and purposes, their mechanism differs. Fountain pens use fluid ink, while ball pens use filler tubes which are disposable upon exhaustion. In as much as Section 185(q) subjects to tax, fountain pens, it is the opinion of this Office that the ball pens do not fall under the provision thereof. Such being the case the ball pens imported by your client as subject to the 7% advance sales tax, the tax to based on the landed cost thereof plus 25% mark-up pursuant to the Section 183(b) in relation to Section 186, both of the Tax Code. acd Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN 1601-593-5 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."