BIR Ruling No. 128-62

November 8, 1962 BIR RULING NO. 128-62 Messrs. Sycip, Gorres, Velayo & Co. Certified Public Accountants P. O. Box 589, Manila Gentlemen : Reference is made to your letter dated October 14, 1962, stating, among other things, that your client is engaged in the manufacture of constant coffee; that is plans to launch a promotional program to introduce to direct consumers its now product in one-ounce-jar containers; and that, for the purpose, it will conduct a house-to-house-sale campaign by selling two jars of coffee at the regular price of one jar only, thus practically giving away one jar free. You now request opinion whether or not, for purposes of the sales tax, your client can deduct the total cost of taxpaid raw materials used in the manufacture or the coffee sold. In answer thereto, I have the honor to inform you that, based on the above-mentioned facts, your query is answered in the affirmative. Very truly yours, JOSE B. LINGAD Acting Commissioner of Internal Revenue