BIR Ruling
BIR Ruling • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Sep 7, 1976
Full text
September 7, 1976 Farmacia Socorro 831 Epifanio delos Santos Avenue Corner Scout Albano Street Quezon City Attention: Mr . Sabas A . Gaerlan Gentlemen : In reply to your letter dated September 1, 1976, I have the honor to inform you that although sales by manufacturers of various drugs and medicine products throughout the country are subject to the 7% sales tax prescribed by Section 186 of the Tax Code, the sales thereof to the Bureau of Supply Coordinator are not subject to the withholding provisions of Republic Act No. 1051 as implemented by Revenue Regulations No. 21-67, for the reason that the sales due thereon cannot be determined at the time of payment. Moreover, if Farmacia Socorro is a mere dealer (one which purchases from the manufacturers for resale), the withholding provision likewise, do not apply for the reason that the sales due on the said products were already paid by the manufacturers and producers thereof. Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."
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