10% Sales Tax — Manufacturer

October 1, 1981 BIR RULING NO. 185-81 199-00 000-00 185-81 Juanito L. Andrade & Associates Room 304-3-6 National Business Center Bldg., 567 G. Puyat St. Sta. Cruz, Manila Attention: Atty . Juanito L . Andrade Gentlemen : This refers to your letter dated May 25, 1981, requesting information as to the business tax status of your client, Pagoda Corporation. It is represented that your client is engaged in the business of bottling, repacking and selling at wholesale rubbing alcohol; that in its operation, it purchases Isoprophyl in drums or in bulk which is 92.6% alcohol content; and that in order to reduce its alcohol content to 70% or 40% to meet the required percentage of rubbing alcohol for external use in clinics, hospitals and homes, your client adds pure water and the mixture is then placed in a bottle of 6 and 16 ounces for distribution and marketing. In reply, I have the honor to inform you that under the above representation, your client is considered a manufacturer. As such manufacturer, it is subject to the fixed tax of P100.00 prescribed by Section 192(1) of the Tax Code of 1977, as amended and to the 10% sales tax on its sales of the manufactured product prescribed by Section 199 of the same Code. aisadc Very truly yours, RUBEN B. ANCHETA Acting Commissioner