Non-deductibility of the Cost of Raw Materials Subject to Specific Tax
BIR Ruling No. 261-58 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • May 2, 1958
Full text
May 2, 1958 BIR RULING NO. 261-58 Mr. Numeriano L. Jose R-203 Alberto Bldg. Rizal Avenue, Manila S i r : In reply to your letter dated April 23, 1958, requesting information as to whether or not the cost of raw materials subject to the specific tax which were imported before the passage of Republic Act No. 1612 and used in the manufacture of toilet preparations after said date is, for purposes of computing the sales tax, deductible from the gross selling price of the manufactured or finished products, I have the honor to inform you in the negative. It may be stated in this connection that even if the raw materials subject to the specific tax were imported and used in the manufacture of articles subject to the sales tax after the passage of Republic Act No. 1612, the cost thereof is not deductible from the gross selling price of the manufactured articles. LexLib Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue
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