BIR Ruling
BIR Ruling • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • May 11, 1973
Full text
May 11, 1973 Philippine Welding Equipment, Inc. P. O. Box 319, Mabolo Cebu City Attention: Mr . Susano I . Valle Accountant Gentlemen : In reply, to your letter dated March 7, 1973, I have the honor to inform you that the provisions of Section 184 to 186 of the Tax Code which allow the deductibility of the cost of raw materials used in the manufacture of articles if the raw materials and the finished articles are subject to the same rate of tax have not been changed by any Presidential Decree. The total cost of raw materials used in the manufacture of the finished product is still deductible from the gross selling price of the finished product if the raw materials have been subjected to the same rate of tax as the finished product. Accordingly, the total landed cost of raw materials plus the mark-up shall be deducted from the gross selling price of your manufactured products. aisadc Very truly yours, (SGD.) CONRADO P. DIAZ Acting Commissioner of Internal Revenue
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