Tax Imposed on "Cora Germ", a By-product of Corn Milled
BIR Ruling No. 348-60 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Jul 27, 1960
Full text
July 27, 1960 BIR RULING NO. 348-60 Messrs. Laspias & Javierto Certified Public Accountants Rm. 3, 2nd Floor, C.N.S. Bldg. Colon & Junquera Sts., Cebu City Gentlemen : In reply to your letter dated June 11, 1960, I have the honor to inform you as follows: The so-called "Cora Germ", a by-product of corn milled is subject to the 2% tax prescribed by section 189 of the Tax Code. The production of oil out of corn germ either by mechanical or chemical process is ordinary manufacturing. The oil thus produced is subject to 7% sales tax and not to the 2% tax. However, the cost of the corn germ is deductible from the gross selling price of the oil produced therefrom. Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue
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