BIR Ruling

May 11, 1973 The Honorable Secretary Department of Public Information Manila S i r : This refers to the letter dated December 13, 1972, of Mrs. Alvarez, stating the following: acd "Nais ko po lamang malaman ang tungkol sa ang refrigerator at T.V. set. Ang una po'y nagkakahalaga ng P1,500, at and T.V. set ay P1,250. Ito po ba'y may buwis na, at kung mayron saan naman kami dapat magbayad." In reply, I have the honor to inform you that if the refrigerator and T. V. set are imported for the personal use of the importer and not for barter, sale or exchange then the imported articles are subject to the 40% compensating tax pursuant to Section 190, in relation to Sections 185-A and 185-B, all of the Tax Code. The Compensating tax which should be paid with the Bureau of Customs, is computed on the total landed cost of the imported articles which means the invoice value plus freight, postage, insurance, commissions, customs duty, and all similar charges or all expenses incurred by the importer before the release of the goods from customs custody. If the said articles are locally manufactured, the same are subject to the sales tax payable by the seller and not by the purchaser. cdtech Very truly yours, (SGD.) CONRADO P. DIAZ Acting Commissioner of Internal Revenue