BIR Ruling

December 6, 1977 Liability to the 7% Advance Sales Tax This refers to your letter dated September 1, 1977 requesting information as to the correct rate of advance sales tax applicable to your importation of FPNM Cold Storage. It is represented that the aforesaid pre-fabricated cold storage is for storing fish, fruits, vegetables, etc., that you are planning to manufacture some component parts of said unit such as panels, coils and blowers to make the same available locally at a lower price. In reply, please be informed that under the foregoing description of the nature and use of the pre-fabricated cold storage and our appreciation of the brochures submitted, the article in question is an industrial refrigerator. Such being the case, it is subject to the 7% advance sales tax, the tax to be based on the landed cost thereof plus 25% mark-up pursuant to Section 183(b) in relation to Section 186, both of the Tax Code.