Advance Sales Tax — Evaporator Chiller

January 29, 1981 BIR RULING NO. 018-81 196-j 000-77 018-81 Wander (Phil.) Inc. P.O. Box 1, MCC Makati, Metro Manila Attention: Mr . T . D . Macabeo Plant Manager Gentlemen : This refers to your letter dated October 28, 1980 requesting that your importation on One (1) unit Trane single circuit shell and tube evaporator chiller be subject to Section 199 instead of Section 196(j) of the Tax Code. It is represented that the aforesaid importation will be used as water chiller for the dehumidification of air in the processing of Ovaltine. Ovaltine is a highly hygroscopic product such that scraping, milling and packaging are done under conditions where the relative humidity of the air should not exceed 42 degrees. In reply, please be informed that the so-called Trane single circuit shell and tube evaporator chiller imported by you is part of your simplified version of a self-contained air-conditioning unit. Accordingly, it is 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%. If the above importation is sold, bartered or exchanged, the same shall be subject to the advance sales tax. aisadc Very truly yours, RUBEN B. ANCHETA Acting Commissioner