BIR Ruling No. 017-80

August 15, 1980 BIR RULING NO. 017-80 204 000-76 17-80 Sanitary Wares Manufacturing Corp. 151 Paseo de Roxas Makati, Metro Manila Attention : Mr . Pete Saguisag Head, Plastic Plant Gentlemen: This refers to your letter dated July 8, 1980 requesting a ruling as to the rate of tax to be imposed on your importation of (1) unit AEC Model OP-50 Forced Draft Cooling Tower, (1) unit Starter Package and (1) unit Repair Kit. You contend that said importations will be installed and used at your plastic Plant to support additional cooling requirement on your injection molding operation. In reply, please be informed that the said so-called AEC Model P-50 Forced Draft Cooling Tower and (1) unit starter Package imported by you are part of your air-conditioning unit of the Central type; hence, they are subject to the compensating tax prescribed by Section 204 of the Tax Code of 1977, as amended, at the rate of 25% imposed by Section 196(j) of the same Code, plus 10% as amended by Batas Pambansa Blg. 41, or a total of 35%. As regards your importation of the repair kit, the same are subject to the compensating tax at the rate of 10% prescribed by Section 199 of the Tax Code. It the above importations are sold, bartered or exchanged, the same shall be subject to the advance sales tax. Very truly yours, RUBEN B. ANCHETA Acting Commissioner