BIR Ruling

June 18, 1970 Atty. Crispin Llamado 20 Victory Avenue, Quezon City S i r : This refers to your letter dated June 11, 1970 requesting that your client's (Hercules Metal Products, Inc.) importation of spare parts and accessories for the local manufacture of gas and oil appliances be subject to only 7% tax in accordance with Section 185 of the Tax Code, as amended by Republic Act No. 6110. In reply, I have the honor to inform you that while it is true that under the amendment effected by Republic Act No. 6110 to Section 185(i) of the Tax Code, locally manufactured appliances used for cooking, warming or keeping warm food or beverage are subject to the 7% sales tax, yet we cannot categorically rule that said articles locally manufactured by your client are subject to the 7% sales tax so as to justify the imposition of the 7% tax on imported parts and accessories thereof, unless we are informed of the extent of the manufacturing activities or operation of your client, particularly as to the parts of the appliances manufactured within the manufacturing enterprise and the other parts used in the manufacture of such articles. Very truly yours, CONRADO P. DIAZ Deputy Commissioner of Internal Revenue