Pencor Transport Inc. Subject to Annual Fixed Tax and to Common Carrier's Tax

February 9, 1984 BIR RULING NO. 033-84 207-00-000-00-033-84 Gentlemen : This refers to your letter dated September 6, 1983 stating that Pencor Transport Incorporated is a corporation duly registered with the Securities and Exchange Commission; that under its articles of incorporation, its primary purpose is to engage in the business of transportation of goods, hauling for freight by means of buses and trailers; that it owns trucks, tractors and trailers for hauling cargoes and derives income from hauling fees paid for brokerage firms, exporters and other business establishments; that the corporation merely undertakes delivery of cargoes and does not handle processing of documents; and that based on its gross quarterly receipts, the corporation paid for the year 1982 and for the quarter ending June 30, 1983, the amounts of P9,155.96 and P14,283.19, respectively, as an independent contractor. Based on the foregoing facts, you now posed the following queries: "a. Is the nature of the business of our firm subject to tax under Section 205(16) of the NIRC or under Section 207 thereof as a transportation contractor which is subject to two percent tax on quarterly gross receipts? "b. In the event that we are subject to tax under Section 207 of the NIRC, what steps must we undertake to correct the errors committed: "1. Can the payments made under Section 204(16) of the NIRC be applied to taxes due under Section 207 without incurring any penalties or surcharges? "2. Can corrections be made in the succeeding quarter and apply the three percent (3%) tax already paid to tax due under Section 207 of the NIRC." In reply, I have the honor to inform you as follows: 1. Since you are engaged in the business of transporting goods, hauling cargoes and hauling for freight by means of buses and trailers, you are a transportation contractor subject to the annual fixed tax of P100.00 prescribed in Section 192 (1) of the Tax Code of 1977, as amended, and to the 2% common carrier's tax on your gross receipts imposed under Section 207 of the same Code. 2. In case you made payments of 3% contractor's tax under Section 205 of the Tax Code based on your gross receipts as transportation contractor and since said receipts are subject only to the 2% tax, you made over payments of the percentage tax. This overpayments may be claimed as tax credit which may be applied against your future payment of any internal revenue tax. For this purpose, you may file a written claim for tax credit with this Office, Attention: Chief, Appellate Division, within two (2) years from date of payment, pursuant to Section 295 of the Tax Code. cdta Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner