BIR Ruling No. 292-82

November 18, 1982 BIR RULING NO. 292-82 192-2 8-82 292-82 Sterling Products International Incorporated 74 Epifanio de los Santos Ave. Mandaluyong, Metro Manila Attention: Mr . N . F . Fonte Gen . Accountant Gentlemen : This refers to your letter dated May 11, 1982 requesting information as to the implementation of Revenue Regulations No. 16-77, governing the manner of withholding taxes on payments made by Government entities to private parties as provided for in R.A. No. 1051 and exemption from withholding tax. It is represented that STERLING PRODUCTS INTERNATIONAL INCORPORATED, is a mere distributor of locally purchased proprietary and consumers product and is one of the supplier of Food Terminal, Inc., which is a government entity; that Food Terminal is withholding a 5% tax on your gross sales to them using BIR form 1743 for the statement of said transaction. In reply, I have the honor to inform you that as dealer of locally purchased proprietary and consumers product, your sales of said merchandise to Food Terminal Inc., are not subject to sales tax and therefore, you are exempt from the withholding provision under R.A. No. 1051 as implemented by Revenue Regulations No. 16-77. However, said sales are subject to the annual graduated fixed tax prescribed under Section 192(2) of the Tax Code, as amended. Very truly yours, RUBEN B. ANCHETA Acting Commissioner