Computation of Sales Tax Due on a Sale "Tax Included"
BIR Ruling No. 128-58 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Jan 1, 1958
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1958 BIR RULING NO. 128-58 Mr. Israel Vinluan 756 Constancia Manila S i r : In reply to your letter dated February 17, 1958, I have the honor to inform you that in computing the sales tax due on a sale "tax included", the illustration indicated below presents the correct manner, assuming the rate of tax at 7%. LLp Gross selling price P- - - (Tax included) Deduct cost of raw materials - - - ______ Balance = 107% 100% = taxable amount 7% = tax Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue
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