Phonograph Records: Locally Manufactured

No date supplied BIR RULING NO. 005-70 Phonograph Records: Locally Manufactured A company which acquired exclusive rights to the use of the new process of producing phonograph records whereby pictures or designs may be imprinted on the surface of the record itself in such a manner that use of the record will not impair the pictures or print on its surface; and which intends to produced the phonograph records not for sale indiscriminately to the general public, but only upon previous order or specification of the contracting party to be used primarily for sales promotion and advertising purposes, is a manufacturer within the purview of Section 194 of the Tax Code. As such, it is subject to the annual fixed tax of P50.00 and its sales of locally manufactured phonograph records is subject to the 7% tax pursuant to Sections 182(A)(1) and 185(g), respectively of the Tax Code, as amended by Republic Act No. 6110. cdasia