BIR Ruling No. 043-63

May 23, 1963 BIR RULING NO. 043-63 Messrs. Stewart, Cunanan & Co. Certified Public Accountants P.O. Box 2288 Gentlemen : Reference is made to your letter dated January 2, 1963, requesting clarification of B.I.R. Ruling No. 62-0119. In said ruling it has been ruled that corporation X which manufactures brand B and transfer these products to corporation Y at cost will be liable to pay the sales tax, instead of Y corporation, on the basis of the selling price of Y corporation. You now ask the following questions: "1. When will the sales tax be done? Is it after the transfer of the product from X Corporation to Y Corporation or after the sale of Y Corporation to the public? "2. What taxes would have to be paid by Y Corporation with respect to these transactions?" In reply thereto, I have the honor to inform you that the sales tax accrues upon sales of the products by "Y" corporation to the public, and payable in accordance with the provision of Section 183(a) of the Tax Code. Under the circumstances, "Y" corporation is a commercial broker subject to the broker's fixed and percentage taxes prescribed in Sections 182(A)(3)(s) and 195 of the same Code. prcd Very truly yours, (SGD.) JOSE B. LINGAD Acting Commissioner of Internal Revenue The above ruling was duly signed by the Acting Commissioner of Internal Revenue on May 23, 1963. (SGD.) P. F. LANDAS Revenue Operations Head (Legal)