BIR Ruling

August 9, 1968 Mr. Pedro S. Isorena 1825-C Sandejas, Pasay City S i r : This has reference to your letters dated July 17 & 29, 1968 requesting information as to the correct rate of advance sales tax or compensating tax to be imposed on the different (one of each 3 kinds) sets of magnetic mathematical symbols and illustrative teaching aids for kindergarten classes which you bought from the Learning Center, Inc., a division of Creative Playthings, Princeton, New Jersey, and which you intend to use as models for manufacturing locally these magnetic illustrations. In reply, I have the honor to inform you that if as represented that the foregoing articles will be used as models for manufacturing locally these magnetic illustrations, the same are subject to the 7% compensating tax, based on the total landed cost thereof pursuant to Section 190 in relation to Section 186, both of the Tax Code. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue