Sales Tax Due on Certain Food Products Sold to Government Entities Exempt from Withholding Tax

January 25, 1984 BIR RULING NO. 019-84 199-a-158-83-019-84 Gentlemen : This refers to your letters dated October 18, 1983 and November 8, 1983 requesting that the sales tax due on the following products: A. San Miguel Corporation 1. Ice Cream Products 2. Tetra products a) Milk/Chocolait b) Juices 3. Bottled products a) Milk/Chocolait b) Juices B. Philippine Dairy Products Corporation 1. Butter 2. Margarine 3. Cheese sold to government entities like the Food Terminal Inc., (FTI) and KADIWA, be exempt from the withholding tax provisions of Republic Act No. 1051. In reply, please be informed that your request is hereby granted. Revenue Regulations No. 4-83 dated March 15, 1983, or the Revised Regulations implementing Republic Act No. 1051, govern the manner of withholding and remitting of taxes due on account of money payments to be made by government offices and agencies. Under said regulations, only the sales tax on gross money payments to producers for every original domestic sale, barter, exchange or transfer of minerals, mineral products, sand and gravel and quarry resources (except gold and other precious metals) logs, lumber and all forest products, cement, agricultural food and non-food products are subject to withholding. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner