Reconsideration of BIR Ruling No. 269 dated July 1, 1960

July 21, 1960 BIR RULING NO. 318-60 Messrs. Sycip, Gorres, Velayo & Co. Certified Public Accountants 490 San Luis, Manila Gentlemen : Reference is made to your letter dated July 6, 1960 requesting the reconsideration of BIR Ruling No. 269 dated July 1, 1960. In said ruling, we held that the awardee for the furnishing and installation of the complete duct-work system of the air-conditioning system of the Bureau of Public Works Building is either a contractor or a manufacturer depending upon whether or not the awardee is ordinarily engaged in the business of selling and/or installing air-conditioning systems. We noticed upon reexamination of the ruling in question that the distinction is not well-founded. This is for the reason that the nature of the work performed remains the same in either case. Accordingly, this Office is of the view and so holds that the awardee for the furnishing and installation of the complete duct-work system of the air-conditioning of the Bureau of Public Works Building is a contractor, subject to the fixed and percentage taxes prescribed by sections 182 and 191 of the Tax Code, regardless of whether or not he is ordinarily engaged in the Business of selling and/or installing air-conditioning systems. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue