25% Advance Sales Tax

February 28, 1979 BIR RULING NO. 003-79 25% Advance sales tax Returned to the Chief, Indirect Taxes, Division, B.I.R., Quezon City the herein papers bearing on the importation of South-West Commercial Corporation of refill ink tube and metal points parts of ballpens. In this connection, it is informed that there is nothing in the provision of the Tax Code that suggests that in imposing the correct tax rate on imported materials and parts and accessories of ballpens distinction is relevant as to whether or not said materials, parts and accessories are to be used for expensive ballpens or for ballpens sold at one peso or less. As the law provides no distinction it is believed that the importation of South-West Commercial Corporation of refill ink tube and metal points parts for ballpens is subject to 25% advance sales tax on the total landed cost thereof, plus 50% mark-up, pursuant to Section 193 in relation to Section 197.II, both of the Tax Code of 1977, as amended by P.D. No. 1358.