Paper Bags Sold to Cement Manufacturers for Their Exclusive Use Subject to 5% Sales Tax
BIR Ruling No. 182-85 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Oct 16, 1985
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October 16, 1985 BIR RULING NO. 182-85 201-g 020-78 182-85 Gentlemen : This refers to your letter dated April 17, 1985 requesting confirmation of your opinion that your client, Sky Bag Manufacturing Corporation is subject only to the 5% sales tax on its sales of manufactured paper bags for cement. It is represented that Sky Bag Manufacturing Corporation is engaged in the manufacture of paper bags for cement; that said products are sold only to cement manufacturers for their own use. In reply, please be informed that said manufactured paper bags which are sold by your client to cement manufacturers for their exclusive use, are considered parts or accessories of the cement product. Accordingly, said bags are subject only to the 5% sales tax prescribed in Section 201(g) of the Tax Code, as amended. cdti Very truly yours, (SGD.) TOMAS C. TOLEDO Acting Commissioner
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