Deductibility of the Cost of Raw Materials Purchased from Tax-Exempt Industries
BIR Ruling No. 072-60 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Mar 1, 1960
Full text
March 1, 1960 BIR RULING NO. 072-60 The Manager Goldcraft Handbag Manufacturing 517 Rosario St., Manila S i r : Reference is made to your letter dated February 26, 1960 requesting, in effect, information whether or not the cost of raw materials purchased by you from tax-exempt industries and used in your manufacture of plastic handbags, suitcases and luggages is deductible, for purposes of the sales tax, from the sales tax, from the gross selling price of your manufactured products. In reply thereto, I have the honor to inform you that the cost of raw materials purchased from tax-exempt industries which are subject to 7% sales tax is nevertheless deductible from the gross selling price of your products even if they are subject to 30% sales tax. cdll Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue
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