Applicability of the Ruling Cited in "Annotations and Jurisprudence on Business and Occupation Taxes", 2nd Edition

March 24, 1958 BIR RULING NO. 196-58 Messrs. Meer, Meer & Meer Attorneys-at-Law Suite 302-306, Singson Bldg. Plaza Moraga, Manila Gentlemen : Reference is made to your letter dated March 20, 1958 inquiring whether or not the ruling cited in page 93 of the book entitled "Annotations and Jurisprudence on Business and Occupation Taxes", 2nd Edition, Araas, reproduced as follows: LexLib "189(39). Nylon remnants having the lengths of to 1 yard and 1 to 10 yards . Nylon remnants having the lengths of to 1 yard and 1 to 10 yards may be subject to 7% sales tax based on the landed cost, plus 25% mark-up provided they come within the following classification as mentioned in Circular Letter No. 1304 dated October 8, 1953 of the Bureau of Customs: "1. 'Unsold ends of piece goods' obtained in the textile mills that is, ends of first quality full-pieces with certain defects and/or 'below grade'. Remnants obtained from ends of first quality fabrics may have any of the following defects: 1. Broken Picks 7. Thick Places 2. Double Picks 8. Shady or Uneven Dyeing 3. Floats 9. Poor Color Matching 4. Ends-Out 10. Blotchy Dyeing 5. Double Ends 11. Misprints 6. Heavy filing 12. Dye Specks "2. Seconds, run-off the mills, inferiors, thirds, sub-standards, shorts, and remnants of all grades of cloth, below standards, sold at various discounts from the first quality price." (Ruling, B.I.R. 105.02 dated Feb. 12, 1954.) is applicable to silk, wool and linen having the same category as the nylon covered by the ruling. In reply thereto, I have the honor to inform you in the affirmative. Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue