Sale of Exempt Preparations

February 24, 1959 BIR RULING NO. 114-59 Mr. Crisologo T. Zarate Farmacia de Venecia 1573 Bambang, Manila S i r : In connection with our letter dated June 9, 1958 demanding payment of the sum of P128.00 as S-4 fixed tax plus penalty, I have the honor to inform you that after a careful study of your case this Office is of the opinion and so holds that the sale of exempt preparations is not subject to the S-4 fixed tax of P36.00 but only to the special tax of P6.00 prescribed in Section 7 of Republic Act 593, otherwise known as the Narcotic Drugs Law. If, however, the person engaged in the sale of exempt preparations is also engaged in the sale of narcotics and has paid the tax prescribed in Section 2(d) of the same Act, he need not pay the special tax of P6.00 for selling exempt preparations. prcd Inasmuch as you have paid the fixed tax of P72.00 for your business of manufacturing and selling exempt preparations and the sum of P12.00 for selling narcotics at retail, you are no longer liable for the payment of the sum of P36.00 as S-4 fixed tax. In view of the foregoing, our demand for payment of the sum of P128.00 as S-4 license for 1955 to 1957 is hereby countermanded and this case considered closed. cdta Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue