BIR Ruling No. 219-61
BIR Ruling No. 219-61 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Jun 30, 1961
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June 30, 1961 BIR RULING NO. 219-61 Neils Enterprises C Basa St., San Francisco del Monte Quezon City Gentlemen : This is in connection with your request for a ruling on the taxes to be paid by you in connection with your contract with the Government for the construction of 40,000 pieces of reflectorized road signs. LLphil In reply, I have the honor to inform you as follows: 1. The raw materials imported by you for used in connection with your business as a contractor is not subject to the 25% mark-up. They are however, subject to the 7% compensating tax based on the total landed cost thereof plus freight, postage, insurance, commission, and all similar charges. 2. You are also liable for the payment of the 3% contractor's tax prescribed in Section 191 of the National Internal Revenue Code, computed on your total gross receipts. LLjur Very truly yours, (SGD.) MISAEL P. VERA Deputy Commissioner of Internal Revenue
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