BIR Ruling No. 037-63

April 26, 1963 BIR RULING NO. 037-63 The General Manager Muos (Hi) Motors, Inc. P.O. Box 2134, Manila S i r : In answer to your letter dated July 18, 1962, I have the honor to inform you that pursuant to opinion the No. 44, current series, of the Secretary of Justice, the reduced rate (7%) of sales tax prescribed in Section 184(a) of the Tax Code can be availed of only by car assemblers and manufacturers who import completely knocked down parts and accessories of automobiles for the purpose of assembling them into finished cars and that where the importer is neither an assembler not a manufacturer, the tax due on such parts and accessories shall be at the rate of either 50%, 75% or 100%, depending upon the total landed cost per unit thereof, although if the importer is himself the end-user, the tax impossible is the compensating and not the advance sales tax. Your query is, therefore, answered accordingly. cdt In this connection it may be stated that answer to your letter has been delayed because the same was referred to the Secretary of Justice, thru the Secretary of Finance, for opinion. Very truly yours, (SGD.) JOSE B. LINGAD Acting Commissioner of Internal Revenue The above ruling was signed by the Acting Commissioner of Internal Revenue on April 26, 1963. cdll (SGD.) P. F. LANDAS Revenue Operation Head (Legal)