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Sales Tax on the Sale of Manufactured Products

BIR Ruling No. 058-60 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Feb 11, 1960

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February 11, 1960 BIR RULING NO. 058-60 Mr. Jesus E. Villamor Certified Public Accountant P. O. Box 65, Cebu City S i r : In answer to your letter dated January 6, 1960, I have the honor to inform you that the sales tax on the sale of manufactured products such as oxygen, acetylene and nails is based on the gross selling price less the cost of raw materials used which were previously subjected to the same rate of tax as the finished product. (Sec. 186, Tax Code) The deductible cost of imported raw materials consists of the landed cost plus the corresponding mark-up. LLjur Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue

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