Imported "V-belt Cord" Used Exclusively as Tension Member of Automotive Belts is Subject to 10% Advance Sales Tax
BIR Ruling No. 350-87 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Nov 6, 1987
Full text
November 6, 1987 BIR RULING NO. 350-87 162 (c) 163 (2) (n) 000-00 350-87 Gentlemen : This refers to your letter dated September 9, 1987 requesting a certification to the effect that your importation of "V-belt Cord" is subject to 20% advance sales tax. It is represented that "V-belt Cord" (sample attached) is an industrial raw material which is used exclusively as a tension member of rubber V-belts and Raw Edge Powerflex Automotive Belt and is not used for any other purpose. In reply, please be informed that automotive rubber V-belts and Raw Edge Powerflex Fan Belts come within the purview of the phrase "spare parts and accessories of motor vehicles" subject to 10% sales tax. (BIR Ruling No. 095-87) Accordingly, based on your certification that the imported "V-belt Cord" shall be used exclusively as tension member of automotive belts, the same is subject to 10% advance sales tax only and not 20%, pursuant to Section 163 (2)(n) in relation to Section 162(c), both of the Tax Code as amended. iatdc Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner
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