BIR Ruling No. 137-61

March 29, 1961 BIR RULING NO. 137-61 Theo H. Davies & Co. Far East, Ltd. P. O. Box No. 287, Manila Gentlemen : In reply to your letter dated February 8, 1961, please be informed that the International Rice Research Institute in Los Baos, Laguna, is exempt from the payment of gift, franchise, specific, percentage, real property, exchange, import, export, and other taxes provided under existing laws or ordinances, pursuant to the provisions of Sec. 1, Republic Act No. 2707, which took effect on June 18, 1960. It is expressly provided by law that the exemption privilege refers only to taxes directly payable by the institute in question. LibLex Accordingly, the corresponding percentage tax due on the sales of non-reinforce and reinforced concrete pipes by the Hume Pipe & Asbestos Co., thru its Sales Agents, to the International Rice Research Institute, not being the direct tax liability of the latter, is payable by the former. Your request for sales tax exemption, therefore, has to be, as it is hereby, denied for lack of legal basis. cdt Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue