Deductibility of the Cost of Raw Materials Imported by a Tax-Exempt Industry
BIR Ruling No. 088-60 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Feb 10, 1960
Full text
February 10, 1960 BIR RULING NO. 088-60 Mr. Jose C. de Guzman Certified Public Accountant P.O. Box 1421 M a n i l a S i r : In reply to your letter dated January 27, 1960, I have the honor to inform you that the cost of raw materials imported by a tax-exempt industry during 1959 on which it paid a tax in the amount equivalent to only 10% of the normal tax due thereon is nevertheless deductible, for purposes of the sales tax, from the gross selling price of the articles manufactured therefrom even if used by the tax-exempt industry in its manufacture in 1960 when the industry is enjoying 75% exemption. prcd Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue
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