BIR Ruling No. 066-83
BIR Ruling No. 066-83 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Apr 15, 1983
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April 15, 1983 BIR RULING NO. 066-83 Gentlemen : In reply to your letter dated February 11, 1982, I have the honor to inform you that the cutting of glasses with specific sizes by the dealer to meet the sizes desired by his customers does not constitute manufacturing, because the cutting of the glasses into desired sizes, and/or installation thereof in buildings are merely incidental to the main contract of purchase and sale. However, if the said dealer receives a separate fee for the installation of the glasses he sells, he shall be subject to the contractor's tax of 3% on said installation fee, under Section 205 of the Tax Code as amended. Moreover, under Revenue Regulations No. 13-78 as amended by Revenue Regulations No. 6-79, implementing P.D. No. 1351, now Section 53(f) of the Tax Code, only income payments to persons enumerated therein are subject to the expanded withholding tax. Accordingly, and since dealers of glasses and mirrors are not among those enumerated in said regulations, money payments to them for their sale and installation of glasses or mirrors in buildings are not subject to the expanded withholding tax. cdta Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner Bureau of Internal Revenue
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