Raw Materials Deductible from the Value of the Manufactured Ice

March 22, 1960 BIR RULING NO. 132-60 Mr. Victorino M. De la Pena R-508 Madrigal Building Escolta, Manila S i r : Reference is made to your letter dated February 18, 1960, requesting information as to what are the raw materials deductible from the value of the manufactured ice and whether or not said cost of raw materials such as salt, ammonia, fuel and lubricating oil are to be entered in Manufacturer's Simplified Accounts and Tax Records. In reply thereto, I have the honor to inform you as follows: The cost of salt and water is not deductible because they are exempt from sales tax. The operational costs such as ammonia, fuel and lubricating oil are not also deductible. The cost of salt, water, ammonia, fuel and lubricating oil and other expenses incurred in connection with your operations must be entered in your Manufacturer's Simplified Accounts and Tax Records. Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue