BIR Ruling No. 131-65

December 3, 1965 BIR RULING NO. 131-65 Mr. Godofredo F. San Pedro 356 Wayan Street Mandaluyong, Rizal S i r : This refers to your letter dated September 21, 1965 the pertinent portion of which states as follows: cdt "The undersigned is presently engaged in a wholesale and retail of local goods (home appliances to be specific) and service job (repair of different home appliances). In addition to the mentioned business, he is also engaged in a business that furnishes recorded musical entertainment. In other words, the undersigned installs complete facilities to any commercial building owners or occupants who wish to have recorded musical entertainment on a rental basis. The ownership of all equipment installed is retained by the undersigned." You now request information as to the business taxes payable on the above described activity. In reply, I have the honor to inform you as follows: 1) The wholesale and retail of home appliances are subject to the graduated annual fixed tax (C-13) imposed by Section 182(A)(2) of the Tax Code. Said tax is payable on or before January 20 of each year and the rate thereof determined by the amount of your gross sales during the preceding calendar year. However, before commencing business, the initial rate of P10.00 should first be paid. 2) For the repair of home appliances and the installation and upkeep of a music system in buildings, you are considered as an independent contractor, subject to the fixed tax of P20.00 per annum prescribed by Section 182(a)(1) and to the 3% percentage tax prescribed by Section 191 of the Tax Code. In addition to the above, you are also subject to the income and additional residence taxes. Very truly yours, (SGD.) MISAEL P. VERA Acting Commissioner of Internal Revenue