BIR Ruling
BIR Ruling • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Apr 5, 1977
Full text
April 5, 1977 The Director Institute of Fisheries Development & Research College of Fisheries U.P., Diliman, Quezon City M a d a m : This refers to your letter of even date requesting clarification as to the tax to be deducted on the bill re: repair of the Volkswagen-Kombi RP-988 of that Office by D.M.G., Inc. as follows: For Labor P1,257.67 For Spare Parts 782647% P9,084.14 Is the tax deductible from labor only or from the gross total of both labor and spare parts? In reply, please be informed that it appearing in the estimate repair submitted by D.M.G., Inc. is a dealer of spare parts; and that it has separately billed the cost of spare parts as evidenced by its spare parts invoices, only the cost of labor (P1,257.67) is subject to the 3% contractor's tax prescribed by Section 191 of the Tax Code. Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-P4519-F2828-A-8 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."
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