BIR Ruling No. 024-63

March 25, 1963 BIR RULING NO. 024-63 Mr. Norberto J. Juentos Corner Libertad & Washington Sts. Bacolod City S i r : Reference is made to your letter dated November 5, 1962 requesting information as to whether or not the warehouse receipts issued by the distillery are subject to the documentary stamp tax, based on the following fact: LLpr "A distillery is owned jointly by a sugar central and the planters milling therein, and produces alcohol only from the share of molasses belonging to the central and the planters. The distillery then issues negotiable warehouse receipts in the names of the sugar central and the individual planters to cover their corresponding shares of alcohol so produced, and now being stores in the tanks of the distillery until such time as the same shall be withdrawn with the approval of the Bureau of Internal Revenue. In order to properly implement Sec. 226 of the National Internal Revenue Code in the above circumstances, I have the honor to request a definitive ruling by that Office on the following query": "Are the warehouse receipts thus issued subject to the payment of the Documentary Stamp Tax if value of goods covered exceeds P200.00, considering that (a) the warehouse receipts are in the names of the owners themselves of the distillery and/or storage tanks and, (b) no compensation or storage fees whatsoever are charged anyone by the distillery for this service, even though some of the warehouse receipts may eventually be endorsed in favor of third parties." prll It appears under the aforequoted facts that the distillery has a separate and distinct personality aside from the owners thereof. accordingly, the negotiable warehouse receipts issued by the distillery are subject to the documentary stamp tax. Sec. 226 of the Tax Code provides, "On each warehouse receipt for property held in storage in a public or private warehouse or yard for any other person than the proprietor of such warehouse or yard himself, there shall be collected a documentary stamp tax of thirty centavos." Very truly yours, (SGD.) JOSE B. LINGAD Acting Commissioner of Internal Revenue The above ruling was duly signed by the Acting Commissioner of Internal Revenue on March 25, 1963. cdta (SGD.) P. F. LANDAS Revenue Operations Head (Legal)