10% Advance Sales Tax — Mineral Oil
BIR Ruling No. 135-81 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Jul 30, 1981
Full text
July 30, 1981 BIR RULING NO. 135-81 199 000-00 135-81 A.M. Sison, Jr. & Associates 6th Floor, Rufino Bldg. 6784 Ayala Avenue, Makati Attention: Atty . A . Gutierrez, Jr . Gentlemen : In connection with your request, on behalf of your client JOHNSON & JOHNSON (PHILS.), INC., for a ruling on the proper internal revenue tax imposable upon its importation of allegedly mineral oil to be used by it as raw material in the manufacture of baby oil, I have the honor to inform you that based on the laboratory analysis conducted by this Office, it is confirmed that the aforesaid imported raw material is a mineral oil and not an essential oil because of its volatile and odoriferous nature of vegetable origin. Consequently, same is subject to 10% advance sales tax based on the total landed cost plus 25% mark-up pursuant to Section 199 in relation to Section 193(b), both of the Tax Code of 1977, as amended. This ruling applies only to the mineral oil being used by your client as raw material in the manufacture of its baby oil products. Allegedly similar articles being used by other manufacturers shall be subjected to the same analysis to determine if this ruling is applicable to them. aisadc Very truly yours, RUBEN B. ANCHETA Acting Commissioner
Ask what this means for your situation
The assistant quotes the passage it relies on and links the source, so you can check every figure it gives you.