BIR Ruling No. 262-82

October 14, 1982 BIR RULING NO. 262-82 201-00 079-80 262-82 Manlo Feeds Incorporated F. Bernal St., Bo. Rosario Pasig, Metro Manila Attention: Col . Agripino D . Manalo (Ret . ) General Manager Gentlemen : This refers to your letter dated February 4, 1982 requesting information as to the correct rate of advance sales tax applicable on imported skimmed milk powder and whey feed grade which will be used as ingredients in the manufacture of poultry and swine feeds. In reply, I have the honor to inform you that under Section 201(f) of the Tax Code, as amended, poultry, swine and cattle feeds, whether imported or locally manufactured, are subject to 5% sales tax. However, the raw materials used in the manufacture of said finished articles are not subject to the same rate of tax. Under the aforesaid Section of the Tax Code, raw materials used in the manufacture of articles taxable thereunder are not subject to tax under the same Section. Such being the case, your importation of skimmed milk powder and whey feed grade, raw materials in the manufacture of poultry and swine feeds is subject to the 10% advance sales tax plus 25% mark-up pursuant to Section 193(b) in relation to Section 199, both of the Tax Code, as amended. aisadc Very truly yours, RUBEN B. ANCHETA Acting Commissioner