Non-deductibility of the Total Cost of Leather Which is Subject to 7% Sales Tax
BIR Ruling No. 352-60 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Aug 10, 1960
Full text
August 10, 1960 BIR RULING NO. 352-60 Mr. C. S. Hipolito Certified Public Accountant Rm. 416, 4th Floor W. L. Yao Building, Manila S i r : In answer to your letter dated August 2, 1960, I have the honor to inform you that the total cost of leather which is subject to 7% sales tax whenever used in the manufacture of leather goods enumerated in section 185(a) of the Tax Code cannot be deducted from the gross selling price of such manufactured articles as the leather is not subject to the same rate of tax as the finished articles. LLphil Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue
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