BIR Ruling

August 9, 1972 Mr. Juanito M. Saavedra Suite 601-602 Trinity Bldg., 6th Floor Teodoro M. Kalaw St., Ermita, Manila S i r : This refers to your letter dated May 5, 1972 requesting information as to the category of the business of your client, Dayton Rubber Corporation of Quezon City for purposes of taxation. It is represented that said corporation is engaged in the recapping service of rubber tires which consist of replacing old and worn out tires by new ones and collecting a reasonable amount for labor and material used for each tire. In reply thereto, I have the honor to inform you that the corporation adverted to is a contractor, subject to the annual fixed tax of P50.00 and to the 3% tax on its gross receipts, pursuant to Sections 182(A)(1) and 191(7), respectively, of the Tax Code, as amended. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue