BIR Ruling No. 075-65

July 7, 1965 BIR RULING NO. 075-65 The Collection Agent Oton, Iloilo S i r : In reply to your letter dated March 26, 1965, you are informed as follows: Owners of ricemills who are engaged in buying and selling palay and rice and its by-products are dealers, subject to the graduated fixed annual tax imposed in Section 182(A)(2) of the Tax Code. cdtech Operators or owners of ricemills accepting palay for deposit for a fixed fee are considered warehousemen subject to the fixed annual tax of twenty (P20.00) pesos and to the 3% tax on gross receipts pursuant to Sections 182(A)(1) and 191, both of the same Code. A person who undertakes the hauling of palay of another for an agreed price is a transportation contractor subject to the fixed and percentage taxes prescribed in Sections 182(A)(1) and 192 of the aforesaid Code. The operators or owners of ricemills, aside from keeping books of accounts, are also required to issue sales receipts or invoices pursuant to Section 14 of Revenue Regulations No. V-1, as amended. Persons subject to tax under Section 191 of the National Internal Revenue Code are, in addition to the books of accounts and other records, required to keep a register book for job orders received in which they shall enter immediately upon making a contract the date, name and address of the customer, a description of the articles to be constructed or the services desired, the consideration therefor, and the amount of deposit or partial payment, if any; and upon completion and delivery of the subject matter of the contract, the date of completion or delivery and amount paid therefor. (Section 11, Revenue Regulations No. V-1) The ricemill operators referred to above are deemed engaged in different lines of businesses. They should, therefore, keep separate sets of books of accounts and issue distinct and separate sales invoices or receipts for each line of business engaged in. Failure of the above taxpayers to keep the corresponding books of accounts and issue the corresponding sales receipts or invoices renders them liable, as separate offenses, to a fine of not more than three hundred pesos or imprisonment for not more than six months or both in accordance with Section 352 of the Tax Code. casia Very truly yours, (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue