BIR Ruling No. 112-65

September 29, 1965 BIR RULING NO. 112-65 Messrs. SyCip, Gorres, Velayo & Co. Certified Public Accountants P. O. Box 589, Manila Attention : Mr . M . Gutierrez Tax Department Gentlemen : This refers to your letter dated May 3, 1965 requesting a ruling as to the meaning of "cash price" used in Revenue Memorandum Circular No. 32-63, dated October 18, 1963, implementing Republic Act No. 3696. In reply thereto, I have the honor to quote hereunder the pertinent provision of Republic Act No. 3696 which reads, as follows: "(c) . . . When the articles are manufactured locally and sold on installment term of at least twelve months, the percentage taxes established in sections one hundred eighty four, one hundred eighty five, and one hundred eighty-six of this Code shall be based on the cash prices of the articles, cash price being defined as the price at which an article is offered for sale on cash term to the public without any discount and/or rebate whatsoever during the tax period." (Emphasis supplied) A "cash price" is clearly different from "spot cash price", necessarily, the "cash price" shall be used as basis for the sales tax even in cases of sales on the spot. cdtech Very truly yours, (SGD.) MISAEL P. VERA Acting Commissioner of Internal Revenue