Duty of Branch Establishment to Keep and Use Books of Accounts

April 20, 1959 BIR RULING NO. 233-59 The World-Wide Progressive Co., Inc. 1877 F. B. Harrison, Pasay City Gentlemen : In reply to your letter dated March 31, 1959, wherein you inquired whether or not your branch establishments should keep and use books of accounts aside from those kept and used by your main office, I have the honor to inform you as follows: All purchases and expenditures whether in cash or credit, and other sundry disbursements incurred in pursuance of the business of persons subject to internal revenue tax should be recorded every day in their books of accounts not later than five o'clock in the afternoon of the day following the date the particular transaction was effected. (Sec. 6, Bookkeeping Regulations, as amended by Revenue Regulations No. V-13). You stated that the activities of your branch establishments are limited to "buying, storing and preparing copra for sales perfected by the Main Office." Your branch establishments, therefore, cater into transactions which must be recorded daily. Hence, they should be provided with books of accounts, at least, the purchase book. lexlib Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue