Taxability of Importation of Non-Agricultural Cooperatives of CKD Cars, Parts and Accessories and Tools

January 18, 1971 BIR RULING NO. 001-71 Importation of non-agricultural cooperatives of CKD cars, parts and accessories and tools, taxability of . Although under Section 66 of Republic Act No. 2-23, as amended by Republic Act No. 4362, Cooperatives (non-agricultural) with net assets of not more than P500,000.00 are exempt from all taxes and government fees of whatever name and nature, except specific taxes, levied by the National Internal Revenue Code, however, Section 184 (a), as amended by Republic Act No. 6110, provides that there shall be no exemption from the tax prescribed therein, the provisions of existing general and special laws to the contrary notwithstanding. Such being the case, the importation of a non-agricultural cooperative of CKD automobiles consisting of the chassis and body with parts and accessories with which the same are usually equipped shall be subject to the advance sales tax at the rates of 100%, 125% 150% or 200% as the case may be. However, its importation of parts and accessories to be used as replacement, as well as tools, shall be subject to only 7% advance sales tax. cdta