BIR Ruling

September 14, 1977 Dried Fish Dealer's Claim for Refund of Erroneously Paid Percentage Tax This refers to the claim filed by MRS. JULIANA C. LU, of Calabanga, Camarines Sur, for refund of P756.91 as alleged erroneously paid percentage tax for the 1st quarter of the year 1973. Claimant-taxpayer is a dried fish dealer. She paid her percentage tax due for the 1st quarter of 1973 under Official Receipt No. E-7180786 dated April 23, 1973 (p. 45), which is certified to by the Revenue Collector of Calabanga, Camarines Sur (p. 30). Payment was received and actually remitted to the government as shown by the certification of the Chief, Accounting Division dated November 16, 1973 (p. 17). After the amendment of Section 188(b) of the National Internal Revenue Code by Presidential Decree No. 69, and prior to her filing of the instant claim, subject taxpayer together with one, Mr. Yu Sui Kiat, sought and obtained an opinion from this Bureau, that dried fish is exempt from the sales tax, pursuant to Section 188(b) of the Tax Code, as amended by Presidential Decree No. 69, which provides as follows: "(b) Agricultural food products, ordinary salt and all kinds of fish and its by-products, whether in their original state or not, except those enumerated under Section 186-B. Agricultural non-food products, whether in their original state or not when sold, bartered or exchanged by the producer or owner of the land where produced. The phrase 'whether in their original state or not' means the transformation of said products by the application of simple processes to preserve or otherwise to prepare said products for the market such as freezing, drying, salting, smoking or stripping." On June 8, 1973, she filed a request for exemption from the payment of percentage tax as dried fish dealer, pursuant to the above-cited section (p. 7). The Regional Director, Revenue Office No. 11, Naga City, granted the request for exemption in his letter dated June 15, 1973 (p. 8). On the basis of the aforementioned law, it is clear that claimant taxpayer is entitled to a refund of P756.91 paid as percentage tax for the 1st quarter of 1973. In view thereof, and as the claim for refund was filed on June 30, 1973 or within two (2) years from April 23, 1973, the date the tax was paid, it is respectfully recommended that the amount of P756.91 be refunded to Mrs. Juliana C. Lu, of Calabanga, Camarines Sur, pursuant to Section 309 of the Tax Code. cdasia