BIR Ruling No. 258-61

June 9, 1961 BIR RULING NO. 258-61 In reply to your letter . . . , I have the honor to inform you that, cement being a mineral product within the purview of Section 246 of the National Internal Revenue Code, as amended, and not subject to the sales tax, pursuant to Section 188(c) of the same Code, the cost thereof is not deductible from the gross selling price of the hollow blocks manufactured therefrom. However, if the cement is imported, the cost thereof is deductible because such cement shall have been subjected to the advance sales tax. The cost of sand used in the manufacture of hollow blocks is, however, deductible from the gross selling price or gross value in money of the manufactured articles if purchased from the producers thereof. If the manufacturer of the hollow blocks himself produces or gathers the sand used in his manufacture, the cost thereof is not deductible. cdasia