BIR Ruling
BIR Ruling • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Apr 4, 1973
Full text
April 4, 1973 Mr. Magno I. Pacheco Bangkal, Meycauayan Bulacan S i r : This refers to your letter dated March 8, 1973 requesting information as to whether or not the cost of raw hide, which is the chief raw material of the finished product (leather), can be deducted from the gross selling price of leather in computing the 7% tax thereon. In reply, I have the honor to inform you that in the computation of the 7% sales tax due on sales of leather, the cost of raw hide (cow or carabao raw hide) which is the principal raw material in the manufacture of leather is deductible from the gross selling price of the manufactured leather. aisa dc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue
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