BIR Ruling

February 19, 1969 Dairy Queen Products Co. of the Philippines, Inc. 1009 Taft Avenue Manila Attention: Mr . R . A . Ferreros, Sr . Gentlemen : This refers to your letter dated February 14, 1969 stated as follows: cdta "Please specify the fixed and percentage taxes our company is subject to in the conduct of our business as follows: "1. We own and operate a refreshment parlor; "2. In our refreshment parlor, we serve to our customers food prepared in our kitchen and ice cream made by us with ice cream making machinery installed right in the premises; "3. We also package ice cream in half gallon and gallon size containers for sale to 'take home' customers; "4. We also sell some ice cream to customers who presumably re-sell that product. "Are we correct in assuming that with respect to items 1 and 2 our gross sales are subject to 3% tax as a food service enterprise, whereas with respect to items 3 and 4 our gross sales are subject to 7% tax as manufacturer of ice cream?" In reply, I have the honor to inform you as follows: As operator of a refreshment parlor and as a manufacturer of ice cream you are subject to two (2) annual fixed taxes of P20.00, one annual fixed tax of P20.00 as operator of a refreshment parlor and another annual fixed tax of P20.00 as manufacturer of ice cream, in accordance with Section 182(A)(1) of the Tax Code. Receipts derived from the sale of good prepared in your kitchen and ice cream made by you with an ice cream making machine installed right in the premises and served in your refreshment parlor are subject to the 3% tax prescribed in Section 191 of the Tax Code. However, your sales of ice cream to the so-called "take home" customers and to customers who presumably re-sell the product are subject to the 7% sales tax imposed in Section 186 of the Tax Code. LLjur Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue