Inclusion of the Amount of NAMARCO Goods in the Gross Receipts

January 24, 1958 BIR RULING NO. 139-58 Mrs. Josefina G. Medina San Andres corner Dart Paco, Manila M a d a m : Reference is made to your letter dated January 20, 1958, requesting information as to whether or not the amount of NAMARCO goods distributed by you should be included in your gross receipts for 1957 for purposes of the graduated (C-13) fixed tax. In reply thereto, I have the honor to inform you that this Office had, in many occasions, already held that NAMARCO distributors and retailers are classified as dealers of locally purchased articles, subject to the graduated annual fixed tax (C-13) under Section 182(A-2) of the Tax Code, as amended, it having been duly established that the nature of the sales contract between the NAMARCO and the distributor and between the latter and the dealers is one of outright sale. In view thereof, the proceeds from your sales of NAMARCO goods should be included in your gross sales for 1957 in the determination of the amount of the graduated fixed tax payable by you for the year 1958. llcd Very truly yours, (SGD.) MELECIO R. DOMINGO Deputy Commissioner of Internal Revenue