BIR Ruling

February 10, 1969 Hon. Ramon D. Bagatsing Secretary PARGO, Manila S i r : This refers to your letter dated February 7, 1969 requesting information as to whether or not one who is engaged in a retail-hardware and general merchandise business should be classified as contractor for undertaking the following: "A contract awarded to him by the city or municipality for the supply of all materials, supplies, tools, equipment and labor for the repainting of a public building at a cost of P72,000.00. The repainting work as executed some time in August 1967 up to January 3, 1969." In reply, I have the honor to inform you that a person who undertakes the repainting of a building for a fixed price furnishing the necessary labor and materials is a contractor under Section 191 of the Tax Code. As such contractor, he is subject to the annual fixed and percentage taxes prescribed in Sections 182(A)(1) and 191 of the Tax Code. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue