BIR Ruling No. 092-83

June 1, 1983 BIR RULING NO. 092-83 Gentlemen : This refers to your letter dated April 7, 1983, requesting certification to the effect that Bristol-Myers (Manila) Inc. is exempt from the 5% sales tax being withheld by Food Terminal, Inc. pursuant to Republic Act No. 1051 as implemented by Revenue Regulations No. 16-77 and Executive Order No. 651 dated February 16, 1981. It is represented that your company is the exclusive distributor of nutritional and pharmaceutical products manufactured by Mead Johnson Philippines, Inc.; that the latter being the manufacturer is the one liable to pay the 5% sales tax of the said products. In reply, please be informed that pursuant to Section 201(c) of the Tax Code, as amended, there shall be levied, assessed and collected once on every original sale, barter, exchange and similar transaction either for nominal or valuable consideration, intended to transfer ownership of, or title to, the articles enumerated hereinbelow, a tax equivalent to five (5%) per centum of the gross selling price or gross value in money of the articles so sold, bartered, exchanged, or transferred, such tax to be paid by the manufacturer or producer: cdta xxx xxx xxx "(c) Locally manufactured medicine. xxx xxx xxx In view therefore, and said Bristol-Myers (Manila) Inc. is not the manufacturer nor producer of the products it is distributing, it is not subject to 5% sales tax provided under Section 201(c) of the Tax Code. Consequently, gross payment for its products by the Food Terminal, Inc. are not subject to the withholding tax of 5% under Republic Act No. 1051 as implemented by Revenue Regulations No. 16-77 and Executive Order No. 651 dated February 16, 1981. Very truly yours, (SGD.) ROMULO M. VILLA Acting Commissioner Bureau of Internal Revenue