BIR Ruling No. 225-82

July 30, 1982 BIR RULING NO. 225-82 199-a 105-82 225-82 Universal Robina Corporation Pasig, Metro Manila Attention: Mr . Emmanuel C . Rojas, Jr . Assistant Vice-President Gentlemen : This refers to your letter dated October 1, 1981 requesting that your sales of manufactured products to government offices, bureaus and government-owned or controlled corporations should no longer be subjected to the withholding tax provisions of Republic Act No. 1051, as implemented by Revenue Regulations No. 16-77 dated October 11, 1977. In reply, please be informed that your sales of manufactured products to government offices, bureaus, and government-owned or controlled corporations are not subject to the withholding provisions of Republic Act No. 1051, as implemented by Revenue Regulations No. 16-77 since the sales tax due thereon cannot be fixed, determined and ascertained at the time of payment. This is so, because with the amendments introduced by Presidential Decree No. 1358, the method of computing the sales tax due on manufactured products has been changed from the cost deduction method to tax deduction method. Under the latter method, the tax on the raw materials deducted from the sales tax due on the manufactured products, can be determined only after the manufacturer files his quarterly return for percentage tax purposes. Very truly yours, RUBEN B. ANCHETA Acting Commissioner