BIR Ruling

April 13, 1972 The President Consolidated Motor Corporation P. O. Box 1524 Manila S i r : This refers to your letter dated April 11, 1972 requesting information as to the rate of advance sales tax and mark-up applicable to your importation of Piezomic element which is a part of the gas valve used in your manufacture of LPG stoves. In reply, I have the honor to inform you that it appearing that you are a qualified local manufacturer of LPG stoves in accordance with the provisions of Revenue Regulations Nos 3-70 and 1-71 as determined and certified to by the Board of Investments as per its certification dated March 23, 1972, your importation of parts to be used in your manufacture of LPG stoves is subject to the 7% advance sales tax, said tax to be based on the landed cost thereof plus 25% mark-up pursuant to Section 183(b) in relation to Section 186, both of the Tax Code. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue