BIR Ruling No. 049-82

March 3, 1982 BIR RULING NO. 049-82 199-a 000-00 049-82 Gentlemen : This refers to your letter dated January 25, 1982 requesting confirmation that the fish flavour powder (H & R 94520/838 088), lobster flavour powder (H & R 96771/853 221), synthetic menthol (H & R BP/USP fine and compact form) are subject to the 10% advance sales tax and 25% mark-up. In reply, please be informed that in the laboratory analysis conducted by this Office it was ascertained that fish and lobster flavour powders could be extracted from fish and lobsters and the synthetic menthol (fine and compact form) is obtained synthetically by hydrogenation of thymol. Fish and lobster flavours are used in the manufacture of food products, like snack foods, bakery, instant soup, Menthol may be used in liquors, confectionary, cough drops, perfumery, nasal inhalers, menthol cigarettes, pharmaceutical products, toothpaste and mouth washes. Accordingly, said flavouring materials are subject to the 10% advance sales tax based on the landed cost thereof, plus 25% mark-up under Section 199 (a) in relation to Section 193 (b) of the Tax Code, as amended. Very truly yours, RUBEN B. ANCHETA Acting Commissioner