BIR Ruling

August 9, 1973 Mr. D. A. Montelibano Executive Vice-President Smith, Bell & Company, Inc. P. O. Box 311, Manila S i r : This refers to your letter dated August 8, 1973 requesting confirmation that the importations of your corporations, namely: Cummins Diesel Sales and Service Corporation of the Philippines; Smith Bell & Company, Inc., and C. M. Lovsted & Co. (Phil.), Inc. of Frigiking, Carrier-Transicold, Krack, J & E Hall, Copeland, Sporland and Penn industrial refrigeration equipment and parts and accessories thereof are subject only to the 7% advance sales tax. cdtech It is stated in your letter that the imported industrial refrigeration equipment are for installation in built-in truck refrigeration units, concrete warehouses, insulated containers and boxes or insulated ships' holds of your clients who are engaged in shrimp and fish processing for export, frozen food manufacturers, frozen chicken producers, supermarket cold storage, fishing boats, etc. In reply, I have the honor to inform you that considering the foregoing nature and uses of the industrial refrigerators imported by your above-named corporations and our appreciation of the brochures submitted, said importations of industrial refrigerators together with parts and accessories thereof by your aforenamed corporations are 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 186, both of the Tax Code. 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."