Deductibility of the Cost of Containers for Purposes of Sales Tax

June 29, 1960 BIR RULING NO. 281-60 Miss Lucy Gonzales P. O. Box 65 Cebu City M a d a m : In reply to your letter dated April 11, 1960, I have the honor to inform you that, generally, the cost of containers is for purposes of the sales tax, deductible from the gross selling price of the manufactured articles contained therein if said containers have been previously subjected to the same rate of tax as the finished products. Unless billed to the purchaser as a separate item in the invoice, the amount intended to cover the sales tax shall be considered as part of the gross selling price of the articles sold, and deduction thereof will not be allowed. (Connel Bros. C. (Phil.) vs. Collector of Internal Revenue, C.T.A. Case No. 357, April 29, 1959). cdta Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue