Rate of Advance Sales Tax on Importation of 19.8 MT Sorbitol Neosorb 70/70
BIR Ruling No. 158-86 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Sep 4, 1986
Full text
September 4, 1986 BIR RULING NO. 158-86 163-2 000-00 158-86 Gentlemen : This refers to your letter dated August 4, 1986 requesting a ruling as to the rate of advance sales tax applicable on your importation of 19.8 MT Sorbitol Neosorb 70/70 which will be sold to Interphil Laboratories, Inc., to be used as raw materials in the manufacture of medicines and drugs. In reply, please be informed that the aforesaid finished articles, i.e. medicines and drugs are subject to the 10% sales tax, in accordance with Section 163(2)(h) of the Tax Code. Accordingly, the aforesaid importation to be used in the manufacture of the said finished articles are subject to the advance sales tax at the same rate of 10% provided that the purchaser, Interphil Laboratories, Inc., shall certify to you that the importations shall be used exclusively in the manufacture of medicines and drugs. [Sec. 163(2), Tax Code, as amended by Executive Order No. 36]. If the purchaser fails to issue the certification, the above importations will be subject to the 20% advance sales tax. cdtech Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner
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