Seller and Supplier of Telephone Drop Wires and Jacketed Cables Subject to P100 Annual Fixed Tax and to 10% Sales Tax

September 24, 1985 BIR RULING NO. 165-85 199-a 000-00 165-85 Gentlemen : This refers to your letter dated August 3, 1985 requesting a ruling as to whether or not you are subject to the 4% contractor's tax and to the 1% withholding tax on the supply of telephone drop wires and jacketed cables to the Bureau of Telecommunication. It is represented that you are engaged in the business of buying, importing, manufacturing, selling and exporting wires and cables; that it has been in the business of manufacturing telephone cables of all sizes and specifications for the general market since 1957; that your customers include the Philippine Long Distance Telephone Company, Armed Forces of the Philippines, Bureau of Telecommunication and other private companies; and that you are a holder of a certificate of Accreditation from the Ministry of National Defense under the classification of manufacturer-supplier of electrical wires and cables. In reply, I have the honor to inform you that your query is answered in the negative. Under the foregoing facts, you are a manufacturer and not a contractor. Accordingly, for selling and supplying telephone drop wires and jacketed cables you are subject to the annual fixed tax of P100.00 and to the 10% sales tax prescribed in Sections 192(1) and 199 of the Tax Code. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner