Taxes on Purchases Made by Philippine Engineers' Syndicate, Inc.

February 14, 1958 BIR RULING NO. 096-58 Mr. Angel v. Villadolid Attorney at Law P.O. Box 744, Manila S i r : Reference is made to your letter of the 1st instant, requesting opinion on the taxability of purchases made by the Philippine Engineers' Syndicate, Inc. from your client, the Manila Trading & Supply Co. You stated that the former is claiming exemption from the sales tax under Republic Act No. 358. In answer thereto, I have the honor to inform you that Republic Act No. 338 exempts from all taxes only the National Power Corporation, it not having made mention of any other corporation or entity. Accordingly, articles sold by your client to the Philippine Engineers' Syndicate cannot be exempt from the corresponding sales tax. LibLex The rule will be the same even if the articles are or will be used by the Philippine Engineers' Syndicate in connection with a contract it has with the National Power Corporation, because while the tax-exemption granted under the aforesaid Act is limited to those tax directly payable by the latter, the sales tax is the direct liability of the manufacturer, producer, or importer of the article sold and not of the purchaser. Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue