BIR Ruling [DA-289-03]

September 1, 2003 BIR RULING [DA-289-03] 101 (A) (2) 28-98 Dasmarias Water District Camerino Avenue Dasmarias, Cavite Attention: Engr. Alfredo S. Silva General Manager Gentlemen : This refers to your letter dated March 6, 2003 requesting exemption from the payment of taxes and other assessments in the transfer of donated lots in your name pursuant to Section 101(A)(2) of the Tax Code of 1997. Documents submitted disclosed that Dasmarias Water District (DWD) is a non-profit entity duly organized and created under Presidential Decree No. 198; that the following corporations donated several properties to DWD more particularly described as follows: 1. DARA REALTY AND DEVELOPMENT CORPORATION Deepwell 400 ft. deep; 6" schedule 40 pipes; 6" drive shoe Submersible Pump and Accessories 15 HP "Myers", 3-phase, 230V, 60 Hz. 8 stages, with a capacity of 105 GPM against 400 ft. TDH, including full voltage magnetic started, cable connector kit and well cover plate Elevated Steel Water Tank 30,000 gallons capacity Transmission and distribution lines and gate valves Individual house service and fire hydrant connections Pump house and pump operator's quarters Private electric pole, service lines and electric meter all of which are erected on a portion of Lot 29, as per TCT No. T-413256 with the exception of the Water Tank which is erected on Blk. 6 (Road Lot 4) owned by the Municipality of Dasmarias, Province of Cavite. 2. INTERHOUSE CORPORATION Deepwell with the following specifications: Submersible pump and accessories with following specifications Steel tank with 15,000 gallons capacity Pumping house Land wherein steel tank and deepwell are erected; Land Title No. T-316485 with an area of 143 square meter. Laid water pipe from deepwell to water distribution line and water line provision connected to water distribution line Service connections Fire hydrants 3. NJR REALTY AND DEVELOPMENT CORPORATION Deepwell 600 ft. depth; 150 mm x 150 LM casings BoI, pipe schedule 40; Submersible Pump & Accessories 20HP, Frankilin brand Elevated Steel Water Tank 50,000 gals. Capacity; Transmission and distribution lines from 2" to 6" uPVC and gate valves Individual house service connections of 3/4" PB and fittings Fire Hydrants Pump house Private electric pole, service lines and electric meter 4. SOGO REALTY & DEVELOPMENT CORPORATION all water system facilities at Armstrong Village, Phases I, II & III consisting of the following: Deepwell 560 ft., Depth: 254 mm x 90.91 1m casings BI pipe schedule 40; 203 mm x 30 1m Johnson screen Submersible Pump & Accessories 30 HP "GOULDS" Pump, "FRANKLIN" Motor. Elevated Steel Water Tank 50,000 gals. Capacity Transmission and distribution lines from 4" dia., 3" to 2" dia. UPVS and gate valves Individual house service connections of " dia. PB and fittings Fire hydrants Pump House and pump operator's quarters Private electric pole, service lines and electric meter All of which are erected upon a portion only of the subdivision lot designated as Block S, Psd-04-038860 covered by TCT No. 653516 and Tax Declaration No. 86397 5. RUDEX INTERNATIONAL DEVELOPMENT CORPORATION entire water system facilities at Dexterville Classic Subdivision, Bgy. Sabang, Dasmarias, Cavite consisting of but not limited to one (1) production deep well erected upon a portion only covered by TCT T-656099 and TCT 128496 6. FILINVEST LAND INCORPORATED Entire Water System facilities including a 200 sq. m. parcel of land covered by TCT No. 510033 and 100 sq. m. of TCT No. 510047 7. EXTRAORDINARY DEVELOPMENT CORPORATION all water system at Golden City Subdivision Phases IX and X in Bgy. Salawag, Dasmarias, Cavite consisting of two deepwells including the portion of the lot on which they are erected covered by TCT No. T-474526 and TCT No. 566261 8. BANNER VENTURES & MANAGEMENT CORPORATION 50 sq. m. portion of the lot covered by TCT No. 313423 9. SHALIMAR BUILDERS & DEV. CORPORATION all water system facilities at Sunnydale Homes Subdivision, Bgy. Sabang, Dasmarias, Cavite, including the lot, portion of TCT No. 702238 consisting of but not limited to the following Deepwell Submersible Pump (7.5 HP Pump & Motor) and accessories Elevated Steel Water Tank 10,000 gallons capacity Transmission and Distribution pipelines from size 2 inch. Diameter to 3 inch diameter Individual House Service Connections used inches diameter PB tubing Pump's Electrical Panel Control House and Pump Operator's Quarter Pump's Electric Pole Service line and Electric Meter 10. SHAPELL HOMES, INC. all water system facilities at Windsor Homes Subdivision, Bgy. Burol, Dasmarias, Cavite including the portion of TCT No. T-672086, consisting of, but not limited to the following: Deepwell (8"0 x 500") Submersible Pump (15 HP Pump & Motor) and accessories Elevated Steel Water Tank 20,000 gallons capacity Transmission and Distribution pipelines from size 50 mm diameter to 75 mm diameter Individual House Service Connections used inches diameter PN tubing Pump's Electrical Panel Control House and Pump Operator's Quarter Pump's Electric Pole Service line and Electric Meter 11. UP EMPLOYEES HOUSING COOPERATIVE (UPEHCO) all water system facilities at Pamayanang UPEHCO II Brgy. Salawag, Dasmarias, Cavite including portion of lot No. TCT No. 648267 and TCT No. 646261, consisting of the following: Deepwell No. 1 Bore hole Depth 177 meters; 203 mm casing; 203 mm perforated casing Submersible Pump & Accessories 25 HP Grunpros pump and Grunpros motor pump Elevated Steel Water Tank 30,000 gallon capacity Pump house and pump operator's room Gate Valves Deepwell No. 2 Bore Hole Depth 182 meters; 254, slotted casing 12. RAISSA REALTY AND DEVELOPMENT CORPORATION all water system facilities at Acacia Homes, including portion of lot covered by TCT No. 407937, consisting of the following: Deepwell 600 ft. Depth; 203 mm x 183 LM casings B.I. pipe schedule 40; 203 mm x 30 LM Johnson screen Submersible Pump & Accessories 25 HP "GOULDS" Pump; "FRANKLIN" Motor. Elevated Steel Water Tank 30,000 gals. Capacity Transmission and distribution lines from 8"0, 6"0, 4"0, 3"0, UPVC and gate valves Individual house service connections of "0 PB and fittings Fire Hydrants Pump House and pump operator's quarters Private electric pole, service lines and electric meter 13. TIMBERLAND PROPERTIES, INC. all water system facilities at Remedios Ville Subdivision consisting of the following: Deepwell 500 ft. dept; 320 ft. x 8" dia.; 180 ft x 6" dia.; 200 ft perforated; Submersible Pump and Accessories 20 hp "Franklin" (USA)/LOWARA (ITALY) motor. Elevated Water Tank 50,000 gals. Capacity Transmission and distribution lines from 2"0, 3"0, 4"0 to 6"0 and gate valves Individual homes service connections of " dia. PB and fittings Fire Hydrants Pumphouse Private Electric Pole, service line and electric meter 14. STATELAND INVESTMENT CORPORATION all water system facilities at Greenfields Class A Farm Lot Subdivision all water system facilities at Summerwind Village Phases I, II and III, including the lot on which they are erected more particularly portion of TCT No. 258312 all water system facilities at Summerwind Village IV, Phases A, B, C, and D including the lot on which they are erected more particularly portion of TCT No. 299716 all water system facilities at Via Verde Village III including the lot on which they are erected more particularly portion of TCT No. 204925 all water system facilities at Southcrest Village including the lot on which they are erected more particularly portion of TCT No. 421004 all water system facilities including the lot on which they are erected more particularly portion of TCT No. 575193 all water system facilities at Emerald Crest Village located at Brgy. San Jose, Dasmarias, Cavite including the lot upon which they are erected more particularly portion of TCT No. 747643 and TCT No. 747644 and that the donors maintain that all the expenses for the preparation and execution of the document, all taxes which may be levied on the water service facilities and on the portion of the lot on which they are erected shall be for the account of DWD and payable by the Donee. In reply, please be informed that inasmuch as the gift is for the use of a government owned-and-controlled corporation created under PD 198, the aforementioned donation is exempt from the payment of donor's tax pursuant to Section 101(A)(2) of the tax Code of 1997. Hence, the donors are not liable to pay the donors tax imposed under Section 98 of the Tax Code of 1997. Moreover, the aforesaid Deed of Donation is not subject to documentary stamp tax prescribed under Section 196 of the Tax Code of 1997, but only to the documentary stamp tax of P15.00 imposed under Section 188 of the same Code. (BIR Ruling No. DA-18-98 dated January 29, 1998) This ruling is being issued on the basis of 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, Commissioner of Internal Revenue By: (SGD.) MILAGROS V. REGALADO Assistant Commissioner Legal Service