BIR Ruling No. 302-61
BIR Ruling No. 302-61 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Aug 21, 1961
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August 21, 1961 BIR RULING NO. 302-61 Central Azucarera de la Carlota La Carlota, Occ. Negros Gentlemen : You have inquired from this Office whether or not the cost of molasses you use in manufacturing denatured alcohol is deductible from the gross selling price of the latter product in computing the 7% sales tax due thereon. You stated that the molasses so used are produced by you for which you have paid the 2% tax prescribed in Section 189 of the Tax Code and that the said alcohol you produce is "for use of the arts and industries". Under the circumstances stated above, please be informed that the cost of the molasses is deductible from the gross selling price of the denatured alcohol in computing the 7% tax thereon, pursuant to Section 186 of the Tax Code. cdpr Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue By: (SGD.) MISAEL P. VERA Deputy Commissioner of Internal Revenue
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