BIR Ruling
BIR Ruling • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Jun 5, 1972
Full text
June 5, 1972 San Miguel Corporation 6766 Ayala Avenue Makati, Rizal Attention: Mr . D . T . Reyes Gentlemen : In reply to your letter dated May 24, 1972, I have the honor to inform you that the cost of agricultural products which are exempt from the sales tax under Section 188(b) of the National Internal Revenue Code used in the manufacture of articles subject to the sales tax is deductible from the gross selling price of the manufactured articles in computing the sales tax due and payable on the sales of said manufactured articles pursuant to Section 186-A of the aforesaid Code. (Republic Flour Mills v. The Commissioner of Internal Revenue and the Court of Tax Appeals, G.R. No. L-25602, February 18, 1970). Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue
Ask what this means for your situation
The assistant quotes the passage it relies on and links the source, so you can check every figure it gives you.