Sales Tax Due on Distributed Products Exempt from Withholding Provisions of RA 1051

March 14, 1984 BIR RULING NO. 060-84 199-a-158-83-060-84 Gentlemen : This refers to your letter dated November 10, 1983 requesting that the sales tax due on the following products manufactured by the different corporations of which you are the distributor, viz: "A. Dole Philippines, Inc. a) Juices b) Solids B. Kimberly Clark (Phils.) Inc. a) Kleenex Bathroom Tissues/Facial Tissues b) Cottons c) Sanitary Napkins d) Aluminum Foils C. Victoria Milling Corporations a) Sardines b) Patis D. Balanced Foods Corp. a) Bulbs b) Incandescent lamps F. ED Keller (Phils.), Inc. a) Insecticides b) Waxes c) Scrubbing Pads d) Dreamists G. Acres & Acres Corp. a) Catsup/Hot Sauce b) Preserves c) Vinegar H. Multi-Pack. Inc. a) Tea" which are sold to Kadiwa, Food Terminal Inc. and other government entities, be exempt from the withholding provisions of Republic Act No. 1051. In reply, please be informed that your request is hereby granted, Revenue Regulations No. 4-83 dated March 15, 1983, or the Revised Regulations implementing Republic Act No. 1051, govern the manner of withholding and remitting of taxes due on account of money payments to be made by government offices and agencies. Under said regulations, only the sales tax on gross money payments to producers for every original domestic sale, barter, exchange or transfer of minerals, mineral products, sand and gravel and quarry resources (except gold and other precious metals), logs, lumber and all forest products, cement, agricultural food and non-food products are subject to withholding. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner