BIR Ruling

December 7, 1966 Major Simeon C. Cruz Supply Center, AFP Camp General Emilio Aguinaldo Quezon City S i r : This refers to your letter dated December 2, 1966 requesting information as to whether or not the payment made by MARSIA DRUG CORPORATION, 770 Hidalgo St., Quiapo, Manila, as appearing in Official Receipt No. C-4692860, dated January 20, 1966 for the Privilege Tax (C-14) for the manufacture of drug and medicine includes also the manufacture of clothing. In reply, I have the honor to inform you that there are four kinds of privilege taxes which were paid by subject taxpayer as appearing on the aforesaid official receipt. They are under (1) S-1, which refers to dealers in medicine containing small quantities of narcotic drug, (2) C-13, which refers to the amount of gross sales exceeding P2,000.00 but does not exceed P10,000.00, (3) C-14, which refers to merchants (Manufacturers, producers and exporters and importers), (4) B-5, which refers to retail vino dealers. The privilege tax paid by the taxpayer as manufacturer of drugs includes the manufacture of both drugs and clothing is conducted in the same establishment. If the manufacture of clothing is conducted in separate establishment, a separate C-14 privilege tax receipt should be secured for said establishment. aisadc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue