Tax Imposed on the Gross Receipts of the Contractor

June 13, 1960 BIR RULING NO. 239-60 The Manila Trading & Supply Co. Port Area, Manila Gentlemen : In answer to your letter dated June 8, 1960 please be informed as follows: You did not state the nature of the "tax" referred to in your letter. We take it, however, that you mean the 3% contractor's tax prescribed in section 191 of the Tax Code. This tax is imposed on the gross receipts of the contractor. Naturally, the obligation to pay said tax rests at the contractor which in the case you presented, is your Company and not the contractor who is the owner of the Automobile repaired by your company. It follows therefore that the tax exemption in favor of income or property of the United Nations has no bearing on the case and cannot be invoked because the tax in question is not imposed on its income or property. aisadc Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue By: (SGD.) MISAEL P. VERA Deputy Commissioner of Internal Revenue