Deductibility of the Selling Price or the Value of the Products Returned by Consignees

January 5, 1966 BIR RULING NO. 003-66 Mr. Ng Keeto General Rubber & Footwear Corp. Northern Hills, Malabon, Rizal S i r : This refers to your letter dated December 9, 1965, stating the following: "We, the GENERAL RUBBER & FOOTWEAR CORP., at Northern Hills, Malabon, Rizal, have the honor to request for a ruling on our business transactions hereunder cited as follows: cdt 1. We are transacting business of our manufactured products on consignment basis which for purposes of simplifying our accounting system will be included in our regular sales the percentage tax of which will be paid within the time prescribed by law; 2. However, if there were goods returned by the consignees, can we deduct the value of the goods returned in the succeeding month? In reply, I have the honor to inform you that under the aforequoted circumstances, the selling price or the value of the products returned by the consignees, may be deducted from the gross sales during the month in which the return was made if said products are not resold during the said month. LLphil Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue