BIR Ruling No. 235-82

August 11, 1982 BIR RULING NO. 235-82 205-00 000-00 235-82 Delray Service, Inc. Suite 403 & 404, 4th Floor Calvo Building Escolta, Manila Attention: Mr . Regino N . Dimagiba President Gentlemen : This refers to your letter dated May 5, 1981 requesting information as to whether or not the contractor's tax withheld from you is deductible from your quarterly payments of the contractor's tax. It is represented that you are a private corporation engaged in providing clerical, messengerial, janitorial and other services; and that one of your clients, the National Home Mortgage Finance Corporation which is a government owned corporation, has withheld from you the contractor's tax applicable to your service income. aisadc It is also verbally represented that the money payments made to you by the National Home Mortgage Finance Corporation upon which the contractor's tax has been withheld was included and reported as part of your gross receipts. In reply, please be informed that since the money payments to you by the National Home Mortgage Finance Corporation, the contractor's tax on which has been withheld by the latter pursuant to Republic Act No. 1051, as implemented by Revenue Regulations No. 16-77 dated October 11, 1977 formed part of your gross receipts for contractor's tax purposes, then the contractor's tax withheld from you is deductible from the quarterly payments of your contractor's tax. Very truly yours, RUBEN B. ANCHETA Acting Commissioner