BIR Ruling

December 22, 1967 Mr. Graciano Evangelista Jolo, Sulu S i r : This refers to your letter dated August 15, 1967 stating that the Sulu Muslim Association is engaged in the stevedoring business (Schedule C-4-39); that the association received from its customers, say P4,000.00 and of this amount only 10% goes to the association and the remaining P3,600.00 goes to the laborers as their share. You now inquire as to whether the association should pay the 3% tax based on its net share of P400.00 or its gross receipts of P4,000.00 without deducting the share of the laborers. In reply, I have the honor to inform you that the Sulu Muslim Association, for engaging in the stevedoring business (Schedule C-4-39) is subject to the annual fixed tax of P20.00 and to the 3% tax prescribed in Sections 182(A)(1) and 191 of the Tax Code, respectively. As such stevedoring contractor, the 3% tax is based on its gross receipts which under your representation is P4,000.00 without deducting the share of the laborers. aisadc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue