Tax Imposed on Ford Thames 800 Truck Express Bus

June 2, 1960 BIR RULING NO. 255-60 Mr. Jack Stowell Philippine Crusades, Inc. P.O. Box 1416, Manila S i r : Reference is made to your letter of the 13th ultimo, requesting information whether or not the motor vehicle shown in the catalog attached thereto and described below is subject to tax at the rate of 7% only: "ONE (1) FORD THAMES 800 TRUCK EXPRESS BUS, 10-Passenger, NASS, . . . HD Radiator With Large Fan, 57 A/H Battery . . ." You stated that the above described vehicle will be donated to that corporation by your missionary organization abroad, for which reason this Office verbally advised your representative that the same may be exempted under the provisions of Republic Act No. 1916. However, said representative manifested to us that, as the vehicle may be subsequently disposed of in case it will not suit your needs, that corporation has decided not to take advantage of the exemption provided by said law. In answer thereto, I have the honor to inform you that, it appearing that the vehicle in question is provided with seats for passengers, it is considered an automobile within the purview of section 184(a) of the National Internal Revenue Code and, therefore, subject to the compensating tax of 50%, 75%, or 100%, depending upon whether the total landed cost thereof does not exceed P7,000.00, or exceeds said amount but does not exceed P10,000.00, or exceeds the last mentioned amount, as the case may be. However, in case so subsequent sale thereof, notice to that effect should be sent to this Office and the Bureau of Customs, Manila, and the difference between the sales tax due and the compensating tax already paid thereon, paid to the latter Office within ten (10) days from such sale. cdtech Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue