BIR Ruling No. 021-65

April 19, 1965 BIR RULING NO. 021-65 The Vizcaisa Forwarding Agents 1141 Narra Street, Tondo M a n i l a Attention : Mr . Jose C . Aguilar Gentlemen : Reference is made to your letter dated January 4, 1965 stating that you are contemplating to open a booking office for freight cargoes to the Cagayan Province; that you will undertake to solicit cargoes in Manila and suburbs for shipment to the provinces; that you do not own any freight truck but instead you will enter into contracts with freight truck owners; that the shipment of the cargoes will be done by the truck owners; and that you will receive only a percentage from the total freight realized as your commission. lexlib You now ask the following questions: "1. What internal revenue taxes am I going to pay? "2. Who will pay the 2% tax prescribed in Section 192 of the Tax Code and the documentary stamp tax on Waybills in Section 227 of the same code? Is it the truck owners or my booking office? "3. What are the book of accounts required for me to keep?" In answer thereto, I have the honor to inform you that in soliciting cargoes for transportation by carriers or transportation contractors you are constituted a commercial broker subject to the fixed annual tax of P150.00 and to the 6% brokers' tax on your monthly gross compensation prescribed by Sections 182(A)(3)(s) and 195, both of the National Internal Revenue Code. The 2% tax prescribed by Section 192 of the same Code is payable by the owner of the trucks who transported the cargoes. The documentary stamp tax on bills of lading or freight receipts prescribed by Section 227 of the said Code is also payable by the truck owner. You are required to keep and use a simplified set of bookkeeping records wherein all the transactions shall be recorded if your gross quarterly earnings or receipts do not exceed P5,000.00, otherwise, you must use and keep a journal and a ledger or their equivalent. (Section 3, Revenue Regulations No. V-1 as amended) Before using any of those books of accounts, you must present them for approval and registration with the Regional Director or the Chief Revenue Officer as the case may be, in accordance with Section 19 of Revenue Regulations No. V-1, otherwise known as the Bookkeeping Regulations. You are also required to use the contract forms which shall be serially numbered and shall be issued in chronological order for every contract entered into with your customers, showing the date and other facts regarding the nature of the services rendered or to be rendered and the signature of the parties thereto. The contracts shall be recorded everyday in a register book showing the date and number of the contract, the name of the customer, the services desired, the compensation agreed upon and the duration of the contract, and upon termination of the contract, a remark as to the date and number of the receipt issued for the compensation received. The contracts shall be filed in the office of the broker in numerical order together with the copies of all papers pertinent to the transactions. (Section 12, Revenue Regulations No. V-1) liblex Very truly yours, (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue