Taxes on the Businesses of Selling Locally Purchased General Merchandise and Copra

April 21, 1958 BIR RULING NO. 279-58 Mr. Jose Aseniero Talisayan, Misamis Oriental S i r : In reply to your letter dated March 24, 1958, I have the honor to inform you that if the businesses of selling locally purchased general merchandise and copra are carried on in the same establishment and the gross sales from the general merchandise business and the copra business are P180,000.00 and P550,000.00 respectively, or a total of P730,000.00, the graduated fixed annual tax (C-13) payable should be based on the total sales of P730,000.00 in which case, the tax is P500.00. However, if the copra business and the general merchandise business are carried on in separate and distinct establishments, each establishment is subject to tax, the amount of which is dependent upon the gross sales of each establishment during the preceding calendar year. It may be stated in this connection that a C-13 privilege tax-receipt covers the sale of all kinds of locally purchased articles with the only exception of those articles, for the sale of which, a distinct privilege tax is imposed by law. The bakery business, even if conducted in the same establishment where the general merchandising business is conducted, is considered a separate line of business, subject to the fixed and percentage taxes prescribed by Sections 182 and 186 of the Tax Code. cdtech Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue