BIR Ruling No. 069-65

June 23, 1965 BIR RULING NO. 069-65 Yutiam Sons Co., Inc. 504 Nueva St., Manila Attention : Yu Kim Hae Treasurer Gentlemen : With reference to your letter dated November 9, 1964, I have the honor to request that a copy of the contemplated contract, if one has already been made, by your company with that of the Musser Marimba, Inc., Chicago, U. S. A. be furnished this Office to enable us to ascertain the taxes to be paid by you. Considering that the so-called Marimba is a musical instrument that produces original music like that of a piano, the same is taxable under Section 185(g) of the Tax Code. If you will import the spare parts and have them assembled here, the same are subject to 30% advance sales tax to be computed on the total landed cost plus 50% mark-up prescribed by Section 183(b) in relation to Section 185 both of the Tax Code. You are also subject to the fixed annual tax of P20.00 prescribed by Section 182(A)(1) as manufacturer and to the 30% sales tax on the products manufactured pursuant to Section 185(g) of the same Code. Very truly yours, (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue