BIR Ruling

March 5, 1970 Fidelity Brokerage Corporation Rm. 302 Filipinas Bldg. Plaza Moraga, Manila Gentlemen : This refers to your letter dated March 3, 1970 requesting information as to the rate of advance sales tax applicable to your client's importation of parts and accessories of industrial exhaust blowers. In reply, I have the honor to inform you that industrial exhaust blowers are considered air circulators specially adapted for industrial use, hence, subject to the 7% tax under Section 185(i) of the Tax Code in relation to Section 186 of the same Code. In view thereof and considering that your client's importation of industrial exhaust blower parts will be installed in manufacturing enterprises, the same 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, as amended by Republic Act No. 6110. acd Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue