Taxability as a Manufacturer of Bread

July 22, 1960 BIR RULING NO. 313-60 Mrs. Catalina U. Amores Atimonan, Quezon M a d a m : This is with further reference to your taxability as a manufacturer of bread. Investigation disclosed that you are actually operating a bakery and a refreshment parlor. Neither you nor the members of your family as represented in your letter dated October 9, 1959 are working in your home in the baking of bread. In fact your husband is employed in the Government service and your children are still studying. On the contrary, it appears that you have employed a baker and a laborer in your business. Under the circumstances, you are considered engaged in a regular business subject to the corresponding tax. As operator of a bakery, you are subject to a fixed tax of P20.00 per annum and to 7% sales tax on your sales of bakery products, the same to be based on the gross selling price less cost of tax-paid raw materials. As operator of a refreshment parlor, you are considered engaged in a separate line of business subject to a fixed tax of P20.00 per annum and to 3% tax on your gross receipts. cdll Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue