BIR Ruling No. 022-64

April 10, 1964 BIR RULING NO. 022-64 Mr. Jose P. Baylon 27 Aragon Street San Francisco del Monte Quezon City S i r : In reply to your letter dated January 31, 1964, I have the honor to inform you as follows: llcd Section 185(p) of the Tax Code was last amended by Republic Act No. 1612 which took effect on August 24, 1956 and now reads, viz: "Textiles, wholly or in chief value of silk, wool, linen or nylon or other synthetic chemical fabrics; wool and silk hats; and furs and manufactures thereof;" There were no amendments to said section since then. Pieces or remnants silk, line, wool or nylon textiles measuring less than five (5) yards may be subject to only 7% sales tax based on the total landed cost, plus 25% mark-up if they come within the classification contained in Circular Letter dated October 8, 1953 of the Bureau of Customs, reproduced as follows: "1. Unsold ends of piece goods' obtained in the textile mills that is, ends of first quality full pieces with certain defects and/or 'below grade'. Remnants obtained from ends of first quality fabrics may have any of the following defects: 1. Broken picks 7 Thick places 2. Double picks 8. Shady or Uneven dyeing 3. Floats 9. Poor color matching 4. Ends-out 10. Blotchy dyeing 5. Double ends 11. Misprints 6. Heavy filing 12. Dye specks "2. Seconds, run-off the mills, inferiors, thirds, sub-standards, shorts, and remnants of all grades of cloth, below standards, sold at various discounts from the first quality price." (BIR Ruling No. 196, s. 1958) prll Very truly yours, (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue