BIR Ruling

March 5, 1973 San Miguel Corporation 6766 Ayala Avenue Makati, Rizal Attention: Mr . D . T . Reyes Gentlemen : This refers to your letter dated December 26, 1972 requesting clarification as to the application of the proper rate of tax on refrigerators. This office cannot as a general rule define the applicable rate of tax on refrigerators and/or refrigerating equipments. Generally, this Office applies the law on a case to case basis. For instance, on the third case projected by you, this Office held that refrigerating equipments used in refrigerating houses or rooms (cold storage) are subject to only 7% sales tax. In another instance which is covered by the fourth case presented by you, this Office also held that refrigerating equipments attached to a manufacturing machinery and forming part thereof as necessary device to make possible the production of the manufactured product are subject to only 7% sales tax. In any case, therefore, where you are concerned, regarding the application of the proper rate of tax on refrigerators, you should submit the case to this Office for proper appreciation. cdta Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue