Rate of Advance Sales Tax on Imported Rex-Rotary Ink Exclusively Used for Rex-Rotary Duplicating Machines
BIR Ruling No. 037-85 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Mar 14, 1985
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March 14, 1985 BIR RULING NO. 037-85 199 (a) 000-00 037-85 Gentlemen : This refers to your letter dated January 7, 1985 requesting information on the applicable rate of advance sales tax on your imported Rex-Rotary ink exclusively used for Rex-Rotary Duplicating machines. It is represented that Rex Rotary inks are modern emulsion inks which do not dry up in the duplicator. Its consistency and composition are suited to Rex-Rotary duplicators. In reply, please be informed that the laboratory analysis conducted by this Office, it was ascertained that the aforesaid inks are printing inks used for duplicating machines. Accordingly, since the said ink is an accessory and/or part of a duplicating machine, an article which is subject to the 10% advance sales tax, the ink shall be taxed at the same rate, i.e. 10% advance sales tax, as the duplicating machines based on the landed cost thereof plus 25% mark-up pursuant to Selection 193(b) in relation to Section 199(a), both of the Tax Code, as amended by Executive Order No. 883. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner
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