BIR Ruling

August 14, 1967 The Superintendent Negros Occidental of Arts & Trades Talisay, Negros Occidental S i r : This refers to your letter dated April 27, 1967 to the Director, Revenue Region No. 14, Bacolod City, requesting reconsideration of his ruling denying your request for exemption from the payment of documentary stamp tax on the Deed of Sale conveying the site of the Talisay School of Fisheries to the Bureau of Vocational Education, which was referred to this Office for final decision. cdpr It appears that the Vendors in the aforesaid sale are the Heirs of the late Generoso Gamboa and the Vendee is the Bureau of Vocational Education. Pursuant to the provisions of Section 210 of the Tax Code, the Vendors as the party signing the deed of conveyance are the ones liable for the documentary stamp tax imposed under Section 233 of the Tax Code. The stipulation in the Deed of Sale that the Vendee assumes all the expenses for the registration and the transfer of title to the property to the Vendee, which agreement is valid under Article 1487 of the New Civil Code, does not avoid payment of the tax inasmuch as the Vendee merely pays for the account of the Vendors who are the ones directly liable for the tax. In view of the foregoing, this Office regrets to inform you that your request for reconsideration has to be, as it is hereby, denied. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue