Lumber Dealer Subject to Annual Graduated Fixed Tax

May 14, 1985 BIR RULING NO. 068-85 192 (2) 90-82 068-85 Gentlemen : This refers to yours letters both dated March 15, 1985 stating that you buy from the sawmill operators lumber of various sizes generally not exceeding two inches in thickness, twelve inches in width and of varying length; that you sell the lumber as is, cut or sliced according to the specifications of the buyer; and that using the mechanical planer properly adjusted, you plane some of the lumber, cut grooves on the sides forming the V-cut lumber. Based on the foregoing representations, you now request a ruling as to whether you are taxable as a dealer or manufacturer of lumber. In reply, please be informed that in buying already manufactured lumber and cutting them into appropriate sizes, or planing, slicing, putting tongue or grooves on it preparatory to the resale thereof, you are only a dealer subject to the annual graduated fixed tax imposed by Section 192(2) of the Tax Code. (Kuenzle & Streiff vs. Collector or Customs, 32 Phil. 510) cdta Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner