BIR Ruling

November 28, 1968 Miss Adele A. Jimenez No. 7, 21st St., East Bajac-Bajac Olongapo City M a d a m : This is with reference to your letter dated November 7, 1968 stating as follows: "1. Is the amount of documentary stamp affixed on hotel receipts a part of the taxable receipts of hotel keepers for purposes of section 191 of the tax code? "2. Is the amount of rental of a locker installed within the premises of a hotel subject to the 3% tax for purposes of section 191 of the tax code?" In reply thereto, I have the honor to inform you as follows: 1. The documentary stamp tax paid by hotel keepers forms part of their gross receipts for purposes of the 3% tax, if the tax is charged to and paid by customers as part of the cost of lodging. The documentary tax is not, however, deductible from the gross receipts of the hotel keeper for purposes of the 3% tax. If the documentary stamp tax is not charged to the customer, then it does not form part of the receipt of the hotel keeper. (BIR Ruling No. 66-057 dated November 15, 1966) 2. The term "gross receipts" of hotels refer to charges, prices, or compensation paid by the guest for their lodging and meals and for such other services and attention as are necessarily incident to the use of the hotel as a temporary abode. Consequently, the amount of rental received for the use of a locker installed within the premises of a hotel is subject to the 3% tax for purposes of section 191 of the Tax Code as the same, necessarily forms part of the gross receipts of hotel keepers. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue