Proper Rata of Advance Sales Tax Imposable on the Importation of Parker "Desk Pen Set Bases"

June 15, 1959 BIR RULING NO. 299-59 Oriental Brokerage, Inc. Room 309 Alliance Bldg. Rosario St., Manila Gentlemen : Reference is made to your letter dated June 10, 1959 requesting information on the proper rate of advance sales tax that shall be imposed on the importation of your client, Sarbro and Co., Inc., of Parker "desk pen set bases". There is no question that, if desk pen sets are imported in their entirely (pen and base included), they shall be subject to 30% advance sales tax if their gross selling price is more than P15.00. The bases are undoubtedly parts and accessories of complete desk pen sets. They are, therefore, subject to the same rate of advance sales tax to which complete sets are subject, pursuant to the last paragraph of section 185 of the Tax Code. Since Parker desk pen sets are sold ordinarily at more than P15.00 a piece, the imported bases alone being manifested as having an import invoice value of more than P9.00 a piece, the imported bases are necessarily subject to 30% advance sales tax. casia Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue