BIR Ruling

July 17, 1973 Messrs. Sycip, Gorres, Velayo & Co. Certified Public Accountants P.O. Box 589, Manila Attention: Mr . B . Y . Abela Tax Division Gentlemen : This refers to your letter dated March 6, 1973, requesting that your client, Atlas Fertilizer Corporation be allowed to bill as a separate item in its sales invoices issued to its customers only the estimate of 7% sales tax. cdt It is represented that the manufacture of fertilizer by your client involves a very complicated and long process thus making it difficult to bill on the sales invoices the correct or exact amount of sales tax since the actual cost of raw materials used in the manufacture of the products sold cannot be definitely ascertained and that the total amount of sales tax due on the monthly sales cannot be known at the end of the month until after the cost of the raw materials that went into the finished products sold is determined or ascertained. In reply, I have the honor to inform you that under the foregoing circumstances, your request is hereby granted, provided that if the estimated sales tax billed is less than the actual sales tax, the actual sales tax shall be paid; and if the estimated sales tax billed is greater than the actual sales tax, the sales tax billed shall be paid to this Office. aisadc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."