BIR Ruling No. 272-82

October 27, 1982 BIR RULING NO. 272-82 199-a 227-82 272-82 Philips Foods Corporation 622 Apelo Cruz Pasay City Attention: Mr . Philip Co Asst . Gen . Manager Gentlemen : This refers to your letter dated August 26, 1982 requesting exemption from the withholding provisions of Republic Act No. 1051, as implemented by Revenue Regulations No. 16-77 dated October 11, 1977 on your sales of manufactured products such as, Philip Catsup, Meatloaf, Vienna Sausage and other food products to the government entities like the KADIWA. In reply, I have the honor to inform you that your sales of the aforesaid manufactured food products to government entities like the KADIWA is not subject to the withholding provisions of Republic Act No. 1051, as implemented by Revenue Regulations No. 16-77 since the sales tax due thereon cannot be fixed, determined and ascertained at the time of payment. This is so, because under Presidential Decree No. 1358, the method of computing the sales tax due on manufactured products has been changed from the cost deduction method to tax deduction method whereby under the latter, the tax on the raw materials deducted from the sales tax due on the manufactured products, can be determined only after the manufacturer files his quarterly return for percentage tax purposes. Very truly yours, RUBEN B. ANCHETA Acting Commissioner