BIR Ruling No. 081-62

July 11, 1962 BIR RULING NO. 081-62 Mr. Gregorio O. Calit Certified Public Accountant P. O. Box No. 33, Oroqueta Misamis Occidental S i r : This has reference to your letter dated April 23, 1962 requesting information on the facts: "A corporation operates a mill for the manufacture of cassava starch. The cassava tubers are bought from different farmers in the locality where the mill is located. The finished products, cassava starch, are distributed or marketed by the corporation to their customers in different provinces. Said corporation has been granted exemption under Republic Act No. 901, as amended by Republic Act No. 2351. For the year 1961, the corporation is entitled to 50% exemption from the percentage taxes. Is the above mentioned corporation subject to any percentage tax? If so, what is the rate? In answer thereto, I have the honor to inform you that as manufacturer of cassava starch said corporation is subject to the 7% sales tax prescribed in section 186 of the Tax Code. Section 189 of the same Code refers only to proprietors or operators of rope factories, sugar centrals rice mills, coconut oil mills, corn mills, and desiccated coconut factories, and does not include manufacturers of cassava starch among the persons taxable thereunder. It is understood that during the current year, the corporation is entitled to a 10% tax exemption in accordance with Republic Act No. 901 as amended. Very truly yours, JOSE B. LINGAD Commissioner of Internal Revenue