Deductibility of the Cost of Raw Materials Purchased from a Tax-exempt Industry
BIR Ruling No. 350-60 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Aug 11, 1960
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August 11, 1960 BIR RULING NO. 350-60 Stewart, Cunanan & Co. Certified Public Accountants P. O. Box 2288 M a n i l a Gentlemen : With reference to your query dated June 22, 1960, I have the honor to inform you that a manufacturer, whose products are subject to 50% sales tax, can still deduct the cost of raw materials purchased from a tax-exempt industry from the gross selling price of the articles manufactured therefrom, notwithstanding the fact that the 25% of the 7% sales tax due on said raw materials was paid by the said tax-exempt industry. Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue
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