BIR Ruling
BIR Ruling • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Oct 25, 1976
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October 25, 1976 Cost of Raw Hides Deductibility from Gross Selling Price This refers to your letter dated October 12, 1976 requesting clarification on the correct computation of the sales tax imposed on the sales of finished leather the main raw material of which are rawhides of cattle, carabao and goat. In reply, I have the honor to inform you that the cost of rawhides is deductible from the gross selling price of the leather in the determination of the 7% sales tax imposed by Section 186 of the Tax Code due on the said finished products. (See BIR Ruling No. 70-0019, dated September 9, 1971). cdtech
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