BIR Ruling No. 023-82

January 26, 1982 BIR RULING NO. 023-82 200 125-81 023-82 New Agrix, Inc. NDC Compound, Pureza Street Sta. Mesa, Metro Manila Attention: Miss Teresita T . Endriga President Gentlemen : In reply to your letter dated December 3, 1981 requesting a ruling on the tax consequence of your plan to import goods either to be used by your firm as raw materials in the manufacture of finished products, or to be sold "as is" to local traders and manufacturers, I have the honor to inform you as follows: 1) You are exempt from the advance sales tax on your aforesaid importations to be used by you as raw materials in the manufacture of finished products pursuant to Section 6, P.D. No. 1717 which provides that "Sec. 6. Exemption from taxes . As a further assistance from the National Government and in order to accelerate the rehabilitation program, New Agrix, Inc. shall be exempt from all taxes under the National Internal Revenue Code, as amended for a period of five years from date hereof." 2) If your importations are sold "as is" to non-exempt local traders and manufacturers, the said purchasers shall be considered the importers thereof, and are therefore liable to pay the advance sales tax thereon. (Sec. 204, Tax Code) 3) Since the purchaser of the imported goods who uses the same as raw material to manufacture finished products should pay the corresponding advance sales tax, he is entitled to tax credit in an amount equivalent to said advance sales tax he has paid pursuant to the sales tax provisions of Title V of the Tax Code. Very truly yours, RUBEN B. ANCHETA Acting Commissioner