Deductibility of the Purchase Price of the Bottle Containers Manufactured by Tax-exempt Industries
BIR Ruling No. 219-58 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Apr 10, 1958
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April 10, 1958 BIR RULING NO. 219-58 Mr. Francisco Alindogan, Sr. 490 San Fernando St., Manila S i r : In reply to your letter dated March 31, 1958, I have the honor to inform you that pursuant to Section 186-A of the Tax Code, as amended by Republic Act No. 2025 which took effect on June 22, 1957, raw materials purchased from tax-exempt industries are for purposes of the sales tax, deductible from the gross selling price of the articles manufactured therefrom. Containers, such as bottles are, for the purpose of the sales tax considered raw materials. Therefore, the purchase price of the bottle containers manufactured by tax-exempt industries, whether purchased directly from the latter or from second-hand dealers is deductible from the gross selling price of the manufactured articles contained therein. For purposes of Section 186-A of the Tax Code, however, only the cost of raw materials purchased from tax-exempt industries on or after June 22, 1957 shall be deductible. llcd Very truly yours, (SGD.) MELECIO R. DOMINGO Deputy Commissioner of Internal Revenue
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