Merchant Who Applies for Any License for the Sale of Goods

May 5, 1960 BIR RULING NO. 236-60 The City Treasurer Dagupan City S i r : This is with reference to your letter dated May 7, 1959, requesting information as to whether or not a "merchant who applies for any license for the sale of goods subject to the specific tax shall first secure a permit from the Provincial Revenue Officer". Please be informed that any merchant, as defined in Section 194(w) of the Tax Code, as amended, who desires to engage in business by merely buying and selling articles subject to specific tax, such as cigars and cigarettes, wines, liquors or distilled spirits, must first secure the corresponding privilege tax receipt/receipts (commonly known as "license or permit") as prescribed in Section 182(A)(3) of the same Code from the Commissioner of Internal Revenue or his duly authorized representative before selling such article to the public. However, before such privilege tax receipt/receipts shall be issued, the provisions of Republic Act No. 1538, as implemented by General Circular No. V-222 dated July 31, 1956 and amended by General Circular No. V-230 dated October 16, 1956 (copies are hereto attached, marked as Annexes 1 & 2), must first be complied with. In this connection, merchants who sell articles subject to specific tax of their own production, are likewise, required to comply with the law which says "No person shall engage in business as a manufacturer of or dealer in articles subject to a specific tax unless the premises upon which the business is to be conducted shall have been approved by the Collector (Now Commissioner) of Internal Revenue". (Sec. 151, Tax Code.) If your query refers to a person engaged in business as wholesale dealer in liquors, fermented liquors, wines, and tobacco, attention is invited to the pertinent BIR regulations quoted hereunder: "Section 2. Fixed business establishment subject to approval of the Commissioner of Internal Revenue . Every person intending to engage in business as a wholesale dealer under these regulations shall file a written application therefor in triplicate with the Commissioner of Internal Revenue, if in Manila, or with the Regional Director, through the Provincial Revenue Officer, if in the province. A sketch of the premises of the fixed business establishments, indicating the portions thereof or places therein where the article to be dealt in are to be stored or kept, shall be attached thereto." (Revenue Regulations No. V-62, as amended by Revenue Regulations No. V-66.) "Section 3. Issuance of Permit . The Commissioner of Internal Revenue shall, upon approval of the application, cause to be issued to the applicant a, permit under administrative schedule "W" with the corresponding paragraph and assessment number." (Revenue Regulations No. 62, dated July 16, 1958.) casia For guidance and further information the subject of your query, it is requested that you consult the Provincial Revenue Officer of your province. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue