Tax Exemption Granted to Victorias Milling Co., Inc.

May 22, 1958 BIR RULING NO. 282-58 The Mayor Manapla, Negros Occidental S i r : Reference is made to your letter dated May 8, 1958, requesting the exemption of the Victorias Milling Co., Inc. from tax for the creosoting of electric posts to be used by that municipality in the establishment of an electric lighting system. It appears that the Victorias Milling Co., Inc. is operating a creosoting plant solely for its use. Upon your representation, however, the company is willing to creosote your electric posts at cost, that is, it charges you only for costs of materials and other expenses actually incurred in connection with the creosoting, provided that, in so doing, it shall not be held liable to any internal revenue tax. In reply, I have the honor to inform you that, it appearing that the Victorias Milling Co., Inc. is undertaking the job not for profit and considering also the fact that your case in only an isolated transaction of the company, the latter, for the creosoting of your electric posts under the aforesaid circumstances shall not be liable to any internal revenue tax on business. Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue