Rate of Sales Tax Payable in the Manufacture of Pilferage Proof Caps
BIR Ruling No. 127-87 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • May 13, 1987
Full text
May 13, 1987 BIR RULING NO. 127-87 163 (e) (h) 124-86 127-87 Gentlemen : This refers to your letter dated January 19, 1987 requesting, in effect, a ruling as to the rate of sales tax payable by you in the manufacture of Pilferage Proof Caps which are used as parts or accessories for medicine and beverages. In reply, please be informed that beverages and medicine are subject to 10% sales tax in accordance with Section 163(2) (e) and (h) of the Tax Code, as amended by Executive Order No. 36. Accordingly, the pilferage proof caps you manufacture shall be taxed at the same rate as the finished products (beverages and medicine) provided that your purchasers shall certify to you that all of said pilferage proof caps shall be used exclusively in the manufacture of beverages and medicine. Upon failure to issue the required certification, the pilferage proof caps shall be taxed at 20%. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner
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