Non-taxability of Dealers of Locally Purchased Goods to Government Bureaus and Offices

May 2, 1958 BIR RULING NO. 258-58 The State Hardware, Inc. 880-886 Rizal Avenue Manila Gentlemen: With reference to your letter of the 17th ultimo, I have the honor to inform you that, if as represented, you are a dealer of locally purchased goods, your sales thereof to government bureaus and offices, including corporations owned or controlled by the government, are not subject to the withholding provisions of Republic Act No. 1051, in relation to Revenue Regulations Nos. V-40, such sales not being subject to any percentage tax. Neither are you subject to the aforesaid withholding provisions on your sales to the same bureaus, offices and/or corporations of articles imported by you either before or after February 16, 1951, provided that the sales tax due thereon had previously been paid, said tax being due and payable only once. aisadc Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue