BIR Ruling No. 365-61

August 8, 1961 BIR RULING NO. 365-61 2nd Indorsement Respectfully returned to the Regional Director, Regional District No. 3, Manila, the entire docket bearing on the deficiency documentary stamp tax case of the Avenue Hotel, Rizal Avenue, Manila, covering the period from 1952 to 1956. The records show that the Avenue Hotel is operated by the National Hotels, Inc., that the latter also operates a restaurant and bar which are open to the general public and on which separate fixed and percentage taxes are being pair; that in the hotel receipts issued by the Avenue hotel, the charges for lodging, food and liquor were billed separately; that the respective amounts of documentary stamps affixed to those receipts were based on the amounts billed for lodging only; and that being of the opinion that the basis for determining the documentary stamp tax due on a hotel receipt is the aggregate of the receipts for lodging and from the sales of food and liquor, that Office demanded from the taxpayer payment of P1,973.10 as deficiency documentary stamp tax, plus P300.00 as compromise penalty. For the purpose of determining the amount of documentary stamps that should be affixed to a hotel receipt, charges for food and liquor need not be considered, unless those charges and that for lodging are billed together in one lump sum in the receipt. Accordingly, and it being the case that the Avenue Hotel billed separately the charges for lodging, food and liquors in the receipts it issued during the period in question, it was correct in disregarding the receipts for food and liquor and in considering only the receipts for lodging in the determination of the tax due on its hotel receipts. However, we are not hereby encouraging the issuance by the taxpayer of a single invoice or receipt to cover receipts for lodging, food and liquor. You are, therefore, directed to advise the taxpayer that, henceforth, it should keep and use three (3) sets of invoices or receipts; one for receipts from the hotel business, another for sales from the restaurant and still another for sales from the bar. Be guided accordingly. LLjur (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue