Tax Imposed on Cold Waving Solution for Hair Use

July 1, 1958 BIR RULING NO. 348-58 Mr. Felipe Estrada 1923 San Marcelino Malate, Manila S i r : In answer to your letter of the 16th ultimo, I have the honor to inform you that cold waving solution for use in the waiving of the hair is subject to the sales tax of 50% prescribed in Section 184 of the Tax Code, based on the gross selling price thereof minus the total costs of raw materials which are taxable under the same section. However, where the raw materials used in the manufacture or preparation of said solution are not taxable under the aforementioned section, the costs thereof are not deductible from the gross selling price of the manufactured product. It may be stated, in this connection, that in addition to the abovementioned sales tax, the manufacture of cold waving solution is subject to the fixed annual tax of P20.00 prescribed in Section 182 (A-1) of the aforesaid Code. Very truly yours, (SGD.) JOSE P. TRINIDAD Acting Commissioner of Internal Revenue