Exemption from Specific Tax — Importation of "Serravallo's Tonic"
BIR Ruling No. 040-81 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Feb 13, 1981
Full text
February 13, 1981 BIR RULING NO. 040-81 199-a 081-80 040-81 SCH Marketing Corporation 564 Santo Cristo Street Binondo, Manila Attention: Mr . Pablo Cotaoco President & General Manager Gentlemen : In reply to your letter dated December 24, 1980, please be informed that your importation of "Serravallo's Tonic", a medicinal preparation containing 14% alcohol by volume, is not subject to the specific tax prescribed in Section 138 of the Tax Code, inasmuch as the chief ingredient thereof, excluding water, is not distilled spirit. It is subject to the 10% advance sales tax based on the landed cost thereof plus 25% mark-up pursuant to Section 193(b) in relation to Section 199, both of the Tax Code. Very truly yours, RUBEN B. ANCHETA Acting Commissioner
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