Tax Liabilities of Operator of a Tailoring Shop and Textile Merchant

March 26, 1968 BIR RULING NO. 002-68 Mr. Alfredo G. Gonzales 11-B Antonio Luna, Project 4 Quezon City S i r : This refers to your letter dated October 24, 1967 stating the following: "I am a Filipino Citizen and a bona-fide resident of Quezon City. At present we own a tailor shop for men. cdtech (1) Aside from the tailor shop, if we engaged in selling textiles at retail, what are the taxes that we must pay? (2) If we try to put up a branch of our tailor shop and also to sell textiles within the same jurisdiction, what are the taxes that we must pay? (3) If we put up a branch in other municipality or city for the same purpose, what are the taxes that we must pay?" In reply thereto, I have the honor to inform you that under the foregoing facts you are an operator of a tailoring shop and a textile merchant. As operator of a tailoring shop you are subject to the P20.00 fixed annual tax prescribed in Section 182(A)(1) and to the 3% tax on your monthly gross receipts, payable within twenty days after every calendar month in accordance with Section 191 in relation to Section 183, all of the National Internal Revenue Code. As a textile merchant, you are subject to the graduated annual fixed tax prescribed in Section 182(A)(2) of the same Code. However, if the tailoring job order calls for a fixed lump price for both labor and material, such lump price shall be considered in determining your monthly gross receipts for purposes of the 3% tax. Every branch establishment you maintain whether located within the same city or in another city or municipality doing the same business as the main establishment is considered a distinct establishment where business is conducted subject to the same fixed and percentage taxes as the main establishment. aisadc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue