BIR Ruling
BIR Ruling • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Oct 1, 1975
Full text
October 1, 1975 Mr. Vicente Balanque 70 Baco St., Sta. Mesa Heights Quezon City S i r : In reply to your undated letter, I have the honor to inform you that a manufacturer of furniture is subject to the fixed annual tax of 50.00 prescribed in Section 182(A)(1) of the Tax Code and his local sales of the manufactured furniture subject to the 7% sales tax, the tax to be based on the gross selling price of the articles manufactured less the allowable cost of raw materials used in the manufacture thereof, pursuant to Section 186 of the same Code. Cost of labor is not deductible. However, his export sales are exempt from the sales tax pursuant to Section 188(e) of the same Code. Very truly yours, (SGD.) EFREN I. PLANA Acting Commissioner of Internal Revenue TAN 1456-040-3
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