BIR Ruling [DA-042-05]

January 28, 2005 BIR RULING [DA-042-05] DA-133-99 dtd 3-3-99 St. Paul Grade School 1232 Sta. Maria St. Tondo, Manila Attention: Mrs. Ruth A Santos Principal Gentlemen : This refers to your letter dated April 13, 2004, requesting exemption from payment of applicable taxes on your importation of one (1) unit of Mitsubishi elevator. It is represented that your school is a non-stock, non-profit Methodist institution serving as an outreach program of your church; that it has been issued a Government Recognitions No. 47, s. 2003 on October 30, 2004 for Nursery and Kindergarten Course and No. E-027, s. 2003 on October 15, 2004 for the Complete Elementary Course, that for the benefit of the school children and the elderly employees of the school, you will install one (1) unit elevator notwithstanding the big amount you will incur; and that you now request for exemption from the payment of applicable taxes on its importation. In reply, please be informed that the above request can not be granted for lack of legal basis. Your importation of one (1) unit Mitsubishi elevator is subject to 10% VAT based on the total value used by the Bureau of Customs in determining tariff and customs duties, plus customs duties excise tax, if any, and other charges, such tax to be paid by the importer prior to the release of such goods from customs custody pursuant to Section 107(A) of the Tax Code of 1997. ADCTac This ruling is issued based on the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different then this ruling shall be considered null and void. Very truly yours, (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal and Inspection Group