BIR Ruling No. 097-63

December 16, 1963 BIR RULING NO. 097-63 Mr. Samuel C. Lim 358 Martires Street Cebu City S i r : Reference is made to your letter dated June 14, 1963 requesting advise as to whether or not B.I.R. Ruling No. 1, RO/7, series of 1959 is affected or superseded by B.I.R. Ruling No. 340, series of 1959. cdtech In answer thereto, I have the honor to inform you as follows: Under B.I.R. Ruling No. 1, RO7, series of 1959, which was issued by Regional Office No. 7, Cebu City, it was ruled that the common carrier's tax is based on the gross receipts received by said carrier excluding the amount charged for documentary stamp tax, pursuant to Section 192 of the Tax Code. The later ruling (B.I.R. Ruling No. 346, s. of 1959), promulgated by the National Office, held that the common carrier's tax cannot be shifted. According to B.I.R. Ruling No. 1 RO/7, the percentage tax due on the gross receipts is computed as follows: Freight charges on a certain shipment P2.00 Additional 2% tax P .04 Additional Documentary stamp tax P .06 Total amount charged against a certain customer P2.10 However, following B.I.R. Ruling No. 346, s. of 1959, which ruled that the common carrier's tax cannot be shifted, the basis of the 2% tax should be P2.04, the amount paid by the customer exclusive the documentary stamp tax of P.06. In view thereof, you are informed that the former ruling is modified by the later ruling to the extent that the basis of the common carrier's tax includes the amount of the billed against the customer. LexLib Very truly yours, (SGD.) RAMON T. OBEN Acting Commissioner of Internal Revenue