BIR Ruling

November 18, 1971 Mr. Claudio P. Lopez Muoz, Nueva Ecija A-617 S i r : This refers to your letter dated October 25, 1971, requesting further clarification on whether a ricemill operator who is not engaged in the buying and selling of rice or palay as a separate business undertaking but merely sells the rice milled by him to the public is subject to the payment of the graduated fixed annual tax based on his gross annual sales aside from paying the fixed tax based on the rated capacity of his ricemill. cdta In reply, I have the honor to inform you that the ricemill operator who sells the rice milled by him to the public is not subject to the graduated fixed annual tax based on his gross annual sales of the milled rice. It is sufficient that he pays the fixed annual tax based on the rated capacity of his ricemill, pursuant to Sections 182(A)(2) and 182(A)(3)(mm), both of the Tax Code. cdi Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue