BIR Ruling

January 24, 1972 The General Manager Impressions, Inc. 68 Jesus St., San Francisco del Monte Quezon City S i r : This refers to your letter dated January 3, 1972 requesting information as to whether you are subject to the 7% sales tax or 3% contractor's tax for the sale of cartons which you manufacture out of boxboard. It is represented that your product is the standard container of a household item; that this container is in the nature of cartons of standard size and made out of boxboard; that the box is produced by standard processes in common use in the industry; that the cartons themselves are manufactured by means of standard processes; and that as incidental step in the manufacture of the containers, you print certain designs on the surface of the carton. In reply, I have the honor to inform you that under the foregoing circumstances, you are a manufacturer of cartons. As such manufacturer, you are subject to the annual fixed tax of P50.00 prescribed in Section 182(A)(2) of the Tax Code, and your sales of the manufactured product is subject to the 7% sales tax imposed in Section 186 of the same Code. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue