BIR Ruling No. 154-61
BIR Ruling No. 154-61 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • May 12, 1961
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May 12, 1961 BIR RULING NO. 154-61 Mr. Crispin Llamado Attorney-at-Law 2147 Carolina, Malate Manila S i r : Reference is made to your letter dated May 11, 1961, requesting information as to whether or not the landed cost plus mark-up imported CKD cars for the purpose of assembly is deductible from the gross selling price of the assembled cars. cdta It appears that your client, Unitrade, Inc. is contemplating to import CKD cars thru barter for the purpose of assembling them to finished cars. The assembly shall be made by an assembly plant. In reply thereto, I have the honor to inform you that CKD cars imported for the purpose of assembly are subject to 7% advance sales tax pursuant to Section 184 of the Tax Code, as amended. The total cost of the CKD cars (landed cost plus mark-up) is deductible from the gross selling price of the assembled automobiles pursuant to the same section of said Code. cdt Very truly yours, (SGD.) MISAEL P. VERA Deputy Commissioner of Internal Revenue
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