BIR Ruling No. 261-82

October 14, 1982 BIR RULING NO. 261-82 199-00 000-78 261-82 Pagdanan Timber Products, Inc. Jardine Davies Building 222 Buendia Avenue Makati, Metro Manila Attention: Mr . Ismael A . Mathay, Jr . President Gentlemen : This refers to your letter dated January 21, 1982 requesting a ruling as to the correct rate of sales tax applicable to domestic sales of logs in its original state. It is represented that you are a forest concessioner and is a BOI registered company; that your company produces logs from its concession in Palawan and sells the same in its original state to domestic wood processors/sawmillers. In reply, I have the honor to inform you that you are considered a producer of logs subject to 10% sales tax imposed under Section 199 of the Tax Code, as amended. (See Commissioner of Internal Revenue vs. Antonio G. Guerrero, G.R. No. L-19074, January 31, 1967) Logs are not considered agricultural products under Section 198 of the same Code. (Mercado vs. Collector of Internal Revenue, 32 Phil. 271). Very truly yours, RUBEN B. ANCHETA Acting Commissioner