BIR Ruling

July 10, 1969 Pandacan Trucking Service Corporation 2118 Herran Street, Sta. Ana Manila Attention: Mr . Rosauro Zulueta President & General Manager Gentlemen : This refers to your letter dated June 30, 1969 requesting information as to whether or not under the provisions of the Tax Code you are subject to the payment of the 2% common carrier's tax and the 3% service tax. It is represented that you are under an exclusive contract with the Shell Refining Company to deliver its products such as gasoline, fuel oil, lubricating oil, shellane gas, etc. from its depots to shell dealers and customers in Luzon; that under your contract with the said Refining Company, you are not allowed to handle or accept any hauling job from the public or from any other oil company; and that you provide services and repairs for the vehicles of the said company. In reply, I have the honor to inform you as follows: For engaging in the business of handling deliveries of products such as gasoline, fuel oil, lubricating oil, shellane gas, etc. and hauling jobs, you are a transportation contractor even if such deliveries or hauling jobs are done exclusively for the Shell Refining Company. Accordingly, you are subject to an annual fixed tax of P20.00 prescribed in Section 182(A)(1) of the Tax Code and to 2% contractor's tax on your gross receipts pursuant to Section 192 of the same Code. For doing or handling repair services on the vehicles of the said Company, you are considered a contractor subject to the P20.00 annual fixed tax and to the 3% contractor's tax prescribed in Sections 182(A)(1) and 191 of the Tax Code. cdlex Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue