Rate of Tax due on Importation of 2,004.137 MT of 1,000 DMT Caustic Soda 50% Solution for Sale to Detergent Makers
BIR Ruling No. 161-86 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Sep 8, 1986
Full text
September 8, 1986 BIR RULING NO. 161-86 163-2-i 000-00 161-86 Gentlemen : This refers to your request for a ruling as to the correct rate of tax due on your importation of 2,004.137 MT of 1,000 DMT Caustic Soda 50% solution for sale to detergent manufacturers. In reply, please be informed that detergents are subject to the 10% sales tax, in accordance with Section 163(2)(i) of the Tax Code. Accordingly, the above importation to be used in the manufacture of detergents are subject to the advance sales tax at the same rate of 10% provided that your purchaser shall certify to you that the importation shall be used exclusively in its manufacture of detergents. [Sec. 163(2), Tax Code, as amended by Executive Order No. 36]. If your purchasers fail 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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