Salesmen are Not Required to Carry a Peddler's License

March 9, 1959 BIR RULING NO. 161-59 Messrs. Ponce Enrile, Siguion Reyna Montecillo & Belo P.O. Box 760, Manila Gentlemen : This is with reference to your query dated February 12, 1959 which reads as follows: LibLex "Our client, Philippine Match Co., Ltd., a domestic corporation engaged in the manufacture of matches, has requested us to seek your ruling on the question of whether their salesmen are required to carry a peddler's license. In order to acquaint you with the facts of the case for purposes of your ruling, the nature of the employment as well as the method of operation of such salesmen are set for below: "The salesmen are paid a monthly salary and a field allowance of P0.30 per carton of matches sold; said allowance covers their actual expenses in lieu of a per diem. They sell the matches for the account of our client in whole cartons to dealers and not directly to consumers, although occasionally, matches are sold by dozens of packets when a store has insufficient capital to invest in a whole carton. The matches are invoiced to the customer in the name of Philippine Match Co., Ltd., and likewise receipted for in the name of the company. The required specific taxes on such matches are paid before the same are removed from the factory." In this connection, I have the honor to inform you that inasmuch as the said salesmen do not sell matches for themselves nor on commission but purely for the account of the corporation as employees of the latter, they are not required to carry a peddler's license. LLphil Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue