BIR Ruling

April 28, 1976 Garlock Philippines, Inc. P.O. Box 2409 M.C.C. Makati, Rizal Attention: Mr . A . A . Tuason Project Engineer Gentlemen : This refers to your letter dated April 20, 1976 requesting clarification as to the correct rate of compensating tax applicable to your importation of one (1) box water chiller. aisa dc It is represented that you are a manufacturer of machinery packings; that the imported water chiller is an accessory of the sheeting mill that supply water to cold roll of the sheeter; that the sheeter is the prime machine used in the manufacture of compressed asbestos packing wherein the mixture of asbestos, fiber, rubber, solvent, accelerators, pigments and anti-oxidant are put thru the hot and cold rolls of the sheeter to produce hot cured rolled compressed sheets. In reply, I have the honor to inform you that under the foregoing description of the nature and use of the imported water chiller, it is indeed an integral part of the complex machinery used in the manufacture of your machinery packing products and not for air-conditioning purposes. Such being the case, it is subject to the 7% compensating tax prescribed in Section 190 in relation to Section 186, both of the Tax Code. Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3