Tax Liability of a Filling Contractor

April 26, 1960 BIR RULING NO. 217-60 Mr. Efrain Gil 889 Mulle Loney Street City of Iloilo S i r : In your letter dated March 17, 1960, you stated the following: "Situation: A filing contractor, municipal license paid, and privilege tax paid. "How much, or how many percent are contractors suppose to pay when: "1. The materials come from government property with an irrevocable permit to excavate. "2. The materials are privately owned land, or when the materials are given free by the land owner." In answer thereto, I have the honor to inform you that a filling contractor is subject to the 3% tax on his gross receipts represented by the full contract price, in accordance with Section 191 of the National Internal Revenue Code, regardless of the source of the materials. prcd Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue