BIR Ruling
BIR Ruling • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Sep 7, 1976
Full text
September 7, 1976 Withholding Provisions of R . A . No . 1051 Not Applicabled to Mere Dealer In reply to your letter dated September 1, 1976, I have the honor to inform you that although sales by manufacturers of various drugs and medicine products throughout the country are subject to the 7% sales tax prescribed by Section 186 of the Tax Code, the sales thereof to the Bureau of Supply Coordinator are not subject to the withholding provisions of Republic act No. 1051 as implemented by Revenue Regulations No. 21-67, for the reason that the sales due thereon cannot be determined at the time of payment. Moreover, if Farmacia Fortuna is a mere dealer (one which purchases from the manufacturers for resale), the withholding provision likewise, do not apply for the reason that the sales due on said products were already paid by the manufacturers and producers thereof. cdtech
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