BIR Ruling

July 29, 1970 The President RR Services, Inc. 1525 M. Adriatico St. Ermita, Manila S i r : This refers to your letter of even date stating, among others, that you are engaged in the business of buying materials like sand, gravel, base course, selected burrow, etc. from different suppliers who have already paid the 7% producers tax thereon; and that you sell said materials to your customers, as is. Under the foregoing facts and circumstances, you would like to know whether your sales to your customers of the aforesaid materials is subject to the 7% sales tax. In reply, I have the honor to inform you that under the aforecited facts and circumstances, you are a dealer of sand, gravel, base course, selected burrow, etc. subject to the graduated annual fixed tax imposed in Section 182(A)(2) of the Tax Code, as amended by Republic Act No. 6110. Such being the case, your sales of the aforesaid materials is not subject to the 7% sales tax imposed in Section 186 of the Tax Code, as amended. aisadc Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue