10% Sales Tax — Importation of Chrome-Plated Nuts and Bolt

1981 BIR RULING NO. 017-81 195-00 000-00 017-81 Messrs. Dizon, Padilla, Beltran & Associates R-403-404 Teodorica Apartment 1148 Roxas Blvd., Manila Attention: Atty . Armando S . Padilla Gentlemen : This refers to your letter dated January 17, 1980, requesting a ruling on the rate of advance sales tax due from your client, Philippine Aluminum Wheels, Inc., on its importation of chrome-plated nuts and bolt. In reply, I have the honor to inform you that according to the findings of this Office, said chrome-plated nuts and bolt are parts of the aluminum alloy road wheel. This conclusion holds even if the latter can be sold with or without the former. In a ruling dated September 3, 1979, this Office ruled that said aluminum alloy road wheel is subject to the 10% sales tax imposed under Section 199 of the Tax Code. The same rate of tax applies to its part or accuracy. In view thereof, the abovementioned imported articles are subject to the 10% advance sales tax based on the landed cost thereof, plus 25% mark-up, in accordance with Section 199, in relation to Section 193(b), both of the Tax Code of 1977, as amended. Very truly yours, RUBEN B. ANCHETA Acting Commissioner