BIR Ruling

March 7, 1972 California Bus Lines 603 Mexico Avenue Tambo, Paraaque, Rizal Attention: Mr . Dionisio O . LLamas, Jr . General Manager Gentlemen : This refers to your letter dated January 27, 1972 requesting that tax exemption certificate be issued in your favor by virtue of Concessionaire Contract No. 816 dated December 17, 1962 and renewal contract No. C-816 dated December 31, 1965 between the Thirteenth Air Force Central Exchange, Clark Air Base and California Bus Lines for the latter to operate a pay bus line service for the exclusive benefit of the U.S. military forces, authorized civilian personnel and their families within the jurisdictional bounds of the Base. In reply thereto, I have the honor to inform you that it appearing that you are an awardee of a Concessionaire Contract to operate a bus line service inside Clerk Air Base exclusively for members of the U.S. military forces, authorized civilian personnel and their families within the base, your receipts derived therefrom is exempt from the 2% common carrier's tax imposed in Section 192 of the Tax Code pursuant to Article XVIII of the U.S.-P.I. Military Bases Agreement. However, your importation of trucks, spare parts and accessories thereof for use in your bus line service within the base is subject to the 7% compensating tax prescribed in Section 198 in relation to Section 186, both of the Tax Code. cdta Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue