BIR Ruling No. 227-82

July 30, 1982 BIR RULING NO. 227-82 199-a 105-82 227-82 Enriton Food Products, Inc. 157 Paso de Blas, Valenzuela Metro Manila Attention: Mr . Antonio G . Sebastian Marketing Manager Gentlemen : This refers to your letter dated February 16, 1982 requesting information as to whether or not you are subject to the withholding provisions of Republic Act No. 1051, as implemented by Revenue Regulations No. 16-77 dated October 11, 1977 on your sales of manufactured food products like, Nelicom Banana Catsup, Patis, Vinegar and Soy Sauce to government entities. In reply, please be informed that your sales of the aforesaid manufactured products to any government entity are not subject to the withholding provisions of Republic Act No. 1051 since the sales tax due thereon cannot be fixed, determined and ascertained at the time of payment. This is so, because under 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 whereby under the latter, 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