BIR Ruling No. 132-62

November 27, 1962 BIR RULING NO. 132-62 Benitez & Company, Inc. P. O. Box 3142 M a n i l a Reference is made to your letter dated August 30, 1962, to the Secretary of Finance, stating the following: cdta "We are contemplating to manufacture Puri-Filters Machine which requires no pumps, electricity or special plumbing. It is a complete unit, portable and light. This machine eliminates water borne deceases with the use of chlorine. It also decontaminates radioactive water every hour. For further particulars, please see attached literature. "Since this is the first of its kind to be manufactured in the Philippines, may we request that we be advised for our reference and guidance, on the following questions: "1. As a Manufacturer, what is the annual fixed tax and under what paragraph of the National Internal Revenue Code? "2. As a Wholesaler and retailer, what specific and percentage taxes shall be paid and when? "3. What other forms of taxes shall be paid? "4. What other requirements necessary to operates as manufacturer, wholesaler, and retailer?" In reply thereto, I have the honor to inform you that for the manufacture of the above-mentioned machine, that corporation shall be subject to the annual fixed tax (C-14) of P20.00 and to the 3% sales tax prescribed in sections 182(A)(1) and 186 of the National Internal Revenue Code. The sales tax, which is based on the gross selling price of the machine, minus the total cost of the materials that go into the manufacture thereof which have been previously subjected to the same rate of tax, is payable within twenty-(20) days after and the end of each month. No specific tax is due on the business. The sale of wholesale and at retail of the machines will not subject the corporation to any other tax on business. The receipts derived from the business are further subject to the income and additional residence taxes. On or before commencement of the business, you should register your name or style, names and residence of the persons constituting the corporation, and places of business with the Chief, Manila Agents. Likewise, you should issue sales or commercial invoices or receipts and keep books of accounts (See: sections 203, 204, and 334, Tax Code, as implemented by Revenue Regulations No. V-1, the Bookkeeping Regulations). prcd Very truly yours, JOSE B. LINGAD Acting Commissioner of Internal Revenue