BIR Ruling No. 014-61

January 4, 1961 BIR RULING NO. 014-61 Reference is made to your letter . . ., which was referred to this Office by the Deputy Auditor General for appropriate action, requesting opinion whether or not parents-teachers associations and other civic organizations authorized to undertake schoolbuilding and community projects under Public Works Acts are exempt from the 3% contractor's tax imposed in Section 191 of the Tax Code. In answer thereto, I have the honor to inform you that, if the case be that the construction or repair of a project is undertaken by the parents-teachers association or other civic organization itself, the same is not subject to the aforesaid tax. Neither would it be subject to the tax if, after having been awarded such construction or repair, it in turn awards the same to a sub-contractor. In this latter case, however, the sub-contractor becomes liable to the tax on the gross receipts derived by him as such. The above ruling is premised on the assumption that said associations and organizations undertake the construction or repair of the projects in either of the case mentioned above not for the purpose of profit. cdt