BIR Ruling

April 22, 1974 The Edward J. Nell Co. 325 Buendia Ave., Ex., cor Malugay Makati, Rizal Attention: Mr . Alberto C . Reyes Supervisor, Import Gentlemen : This refers to your letter of even date requesting confirmation of your understanding that your importation of Marley Cross Flow Cooling Tower with accessories is subject to the 7% advance sales tax. aisa dc It is represented that the Marley Cross Flow Cooling Tower is only a part of a unit and does not use compressor or any refrigerating device; that for accessories, it has multi-bladed fan, gearreducers and driveshafts; that the multi-bladed fan circulates the air just above the water basin, thus enabling the water to cool; that it is capable of 1,000 U.S. gallon per minute of water from 95F to 85F at 80F design wet bulb temperature; that its length is 20'.6 and has an overall operating weight of 45,540 pounds, that this cooling tower can be used in glass-manufacturing, tire-manufacturing, desiccated coconut and other allied industries. In reply, I have the honor to inform you that from the foregoing description and use of the Marley Cross Flow Cooling Tower and our appreciation of the brochure and shipping documents submitted, the same is a complex air circulator specially adapted for industrial use under Section 185(i) of the Tax Code. Such being the case, it is subject to the 7% advance sales tax based on the landed cost thereof plus 25% mark-up pursuant to Section 183(b) in relation to Section 185(i) and 186, all of the Tax Code. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5