Rate of Advance Sales Tax on Importation of Special Lemon Oil, Terpeneless Lime and Terpeneless Lemon Oils

March 19, 1985 BIR RULING NO. 041-85 193-b 006-80 041-85 Gentlemen : This refers to your letter dated October 10, 1979 requesting reconsideration of our ruling dated October 16, 1978 subjecting your importation of Special Lemon Oil, Terpeneless Lime and Terpeneless Lemon Oils to 50% advance sales tax. It is represented that special lemon oil, terpeneless lime and terpeneless lemon oils are flavoring raw materials used in the manufacture of 7UP softdrinks called concentrates; and that these concentrates are classified as food and beverage subject to the 10% tax. In reply, I have the honor to inform you that the aforesaid articles, if used exclusively in the manufacture of 7UP softdrinks, are 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 of 1977, as amended. If the abovementioned articles will be used for purposes other than the manufacture of flavor or concentrate for 7UP softdrinks, the same will be subject to the 50% advance sales tax plus 100% mark-up in accordance with Section 193(b) in relation to Section 194(b), both of the Tax Code of 1977, as amended. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner