BIR Ruling No. 029-83

February 24, 1983 BIR RULING NO. 029-83 S i r : This refers to your letter dated January 25, 1983 requesting a ruling for and in behalf of your client, ROWELL PLASTIC CORPORATION, to the effect that the sale of its manufactured plastic containers to government offices, bureaus, agencies and government owned or controlled corporations are not subject to the withholding tax provision of Republic Act No. 1051, as implemented by Revenue Regulations No. 16-77 dated October 11, 1977. In reply, please be informed that your sales of the aforesaid manufactured plastic containers to any government entity are not subject to the withholding provisions of Republic Act No. 1051 since the sales tax due thereon cannot be fixed, determined and ascertained at the time of payment. This is so, because under Presidential Decree No. 1358, the method of computing the sales tax due on manufactured products has been changed from the cost deduction method to tax deduction method whereby under the latter, the tax on the raw materials deducted from the sales tax due on the manufactured products, can be determined only after the manufacturer files his quarterly return for percentage tax purposes. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner Bureau of Internal Revenue