Computation and Billing of the Manufacturer's Sales Tax

January 27, 1960 BIR RULING NO. 075-60 Messrs. Ross, Selph & Carrascoso P. O. Box 781 M a n i l a Gentlemen : In reply to your query, I have the honor to inform you that the following computation and billing of the manufacturer's sales tax is considered by this Office as a substantial compliance with the provisions of General Circulars Nos. 431 and 440 as interpreted by the Court of Tax Appeals in CTA Case No. 35, entitled "Connell Bros. Co. (Phil.) vs. Collector of Internal Revenue." cd Actual selling price P290.00 Cost of raw materials imported by manufacturer plus 25% mark-up 125.00 Cost of locally purchased materials subject to 7% sales tax 58.00 Net taxable amount plus 7% tax 107.00 Sales Tax 7.00 The invoice to be issued by the seller will contain, among other things, the following information: Gross Selling Price (excluding tax) P283.00 7% Sales Tax 7.00 P290.00 ====== Computation of the 7% Sales Tax Total Selling Price P290.00 P283.00 Less: 7% Sales Tax 7.00 Total brought forward P283.00 Less: Deductible materials 183.00 NET AMOUNT SUBJECT TO 7% Tax P100.00 7% Sales Tax P7.00 Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue