Sales Tax Imposed on MMIC

September 11, 1981 BIR RULING NO. 176-81 193 (a) 38-81 176-81 Tulio, Evangelista, Lim & Co. Certified Public Accounts 869 Quezon Avenue Quezon City Attention: Mr . Bienvenido A . Lim Partner Gentlemen : This refers to your letter dated January 27, 1981 requesting for a ruling as to whether Marinduque Mining & Industrial Corporation (MMIC) is exempt from the payment of the sales tax on the manufactured materials it purchases is view of the tax exemption privileges granted to it under Republic Act No. 1828, as amended. In reply, please be informed that your query is answered in the negative. The tax exemption provided for under Section 6(a) of Republic Act No. 1828, as further amended by Presidential Decree No. 1662, applies only to all taxes, duties, fees and charges, both national and local, for which MMIC would be directly liable . Consequently, MMIC cannot claim exemption from the payment of sales tax on the manufactured articles it purchases for the reason that the same is a tax directly payable by the manufacturers thereof. The fact that the tax may ultimately be shifted to or passed upon MMIC as part of the cost of the purchased articles will not convert the same as a tax on MMIC for purposes of exemption. cdta In view of the above ruling, the other question as to whether the manufacturers of the raw materials can also claim tax exemption in the event MMIC is exempt from the sales tax need not be answered. Very truly yours, RUBEN B. ANCHETA Acting Commissioner