Taxability of a Manufacturer of Hollow Blocks

July 18, 1958 BIR RULING NO. 364-58 Joven & Joven Attorneys-at-Law E-401 Tuason Building Escolta, Manila Gentlemen : Reference is made to your letter dated July 17, 1958 inquiring into the taxability of your client who is a manufacturer of hollow blocks under the transactions mentioned therein which are reproduced below: LibLex 1. Sales of sand produced by the dredgers of the Corporation; 2. Pumping service of the dredgers of the Corporation to outside bances; and 3. Sand dredged and used by the plant of the Corporation in the production of hollow blocks. In reply, I have the honor to inform you as follows: As manufacturer of hollow blocks, your client is subject to the fixed and percentage taxes prescribed in Sections 182 and 186 of the Tax Code. Under transaction No. 1, your client is a producer of sand, subject, in separate capacity, to the fixed and percentage taxes also prescribed in Sections 182 and 186 of the Tax Code. No ruling can be issued under transaction No. 2 because of the inadequacy of the facts. Under transaction No. 3, your client is not subject to any internal revenue tax on the sand produced by itself and which it used in its manufacture of hollow blocks. Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue