Taxes on the Release of Microphones and Loudspeakers from Customs Custody

January 6, 1958 BIR RULING NO. 005-58 Benitez & Company, Inc. State Building Manila Gentlemen : In connection with your letter dated January 3, 1958, requesting the release from customs custody of eleven cartons microphones and loudspeakers upon payment by you of the compensating tax only on the ground that the same will be used by the Mapua Institute of Technology as instructional and demonstrative devices, I regret to inform you that your said request cannot be granted. It appears that your request is based on a 2nd indorsement of this Office dated December 12, 1957 to the Honorable, the Undersecretary of Finance, wherein this Office gave the information that scientific instruments intended for the use of the Mapua Institute of Technology in connection with the instruction of students at its electronics laboratory are subject to the compensating tax prescribed by Section 190 of the National Internal Revenue Code. In this connection, it is informed that the said information was given on the assumption that the Benitez & Company, Inc. would act only as indentors for the Mapua Institute of Technology whereby the said institution would make use of its own dollars and appear as the consignee upon arrival of the said articles. From the papers submitted by you, it appears that the imported articles, although intended for the use of the Mapua Institute are consigned to your company as evidenced by the bill of lading, Central Bank release certificate and commercial invoice attached thereto. In view of all the foregoing, this Office holds that the said articles are subject to the 7% advance sales tax prescribed by Section 183(B), in relation to Section 186 of the Tax Code, based on the total landed cost thereof, plus the mark-up prescribed by Republic Act No. 594. aisadc Very truly yours, (SGD.) MELECIO R. DOMINGO Deputy Collector of Internal Revenue