BIR Ruling No. 049-61

1961 BIR RULING NO. 049-61 Respectfully returned to the Honorable, the Secretary of Finance, Manila, the letter dated . . . of Mr. Marcelo R. Reside. cdtech A person engaged in the business of "sari-sari" store is subject to the graduated annual fixed tax (C-13) prescribed in Section 182(A)(2) of the National Internal Revenue Code, the initial payment of which is P10.00 and the subsequent ones depend on the amount of gross sales during a given calendar year. However, where his the gross sales for a year is P2,000.00 or less, he becomes exempt from said tax for the subsequent year. Such being the case, and considering that, as claimed by Mr. Reside, his maximum daily sales is P4.00 only; if that is true then he is exempt from the tax. In other words, if the gross sales of Mr. Reside for 1960 did not exceed P2,000.00, then he need not pay any tax for the current year. This does not mean, however, that he is also exempt from the initial payment mentioned above. Neither would he remain exempt even if in the years to come his sales exceeds P2,000.00 The fact that a person or the members of his family are suffering from any ailment is not a legal ground for exemption from the internal revenue business tax. aisadc