Gross Income and/or Receipts of Rice and Corn Mills Proprietors or Operators

July 18, 1958 BIR RULING NO. 369-58 Mr. Pio Y. Go Pio V. Corpuz, Masbate S i r : With reference to your letter dated June 7, 1958, I have the honor to inform you that pursuant to Sections 10 and 11 of Revenue Regulations No. 7, known as the "Rice and Corn Mills Regulations", a rice or corn mill operator must issue a receipt for every quantity of palay or corn delivered or received in the mill or mill warehouse and an invoice for every quantity of milled rice or ground corn sold or delivered by them from the mill or mill warehouse. If the owner of the palay or corn received is the operator or proprietor of the mill, he shall issue the receipt in his name. If he is the owner of the milled rice or ground corn, the operator or proprietor shall issue the invoice in his name. In both instances, the issuance of temporary receipt or invoice is prohibited. The receipt or invoice should be serially numbered in duplicate, the original to be delivered to the owner of the palay or corn grain or milled rice or ground corn as the case may be, and the duplicate to be retained by the operator or proprietor of the rice or corn mill. Among others that should be indicated on the receipt or invoice are the name and address of the operator or proprietor of the mill, the date of issue and the name and address of the owner of the palay or corn grain or the milled rice or ground corn. cdt As to the kinds of books you are going to keep, Section 9 of the aforesaid Regulations provides that operators or proprietors of rice or corn mills shall keep a record book with a debit side and a credit side. The debit side shall be used for recording the raw materials received, the amount of tax, date and number of receipt issued therefor, name and address of owner, residence tax number, quantity, variety, quality and value of the palay or corn grain received and the quantity, weight, variety, quality and value of the manufactured products, either, milled rice or ground corn including the kind, quality, quantity and value of the by-products. The credit side shall be used also for recording the palay or corn grain removed from the mill or mill warehouse, the date of sale or removal therefrom, the number of the invoice, to whom sold or delivered, the address of the buyer or owner, the resident tax number, the quantity, variety, quality and value of the palay or corn grain removed, the quantity, weight, variety, quality and value of the manufactured products, either milled rice or ground corn including the kind, quality, quantity and value of the by-products. The amount to be recorded shall be the gross value in money of all the milled rice or ground corn including the by-products of the raw materials from which said articles are produced or manufactured. The market value shall be determined by taking into consideration the market price of rice and corn in the locality where the mill is located. If the prevailing market price of rice and corn in a locality cannot be ascertained, the market price of such articles as quoted or published by the Bureau of Commerce may be considered the market value in that locality; and if there is no market quotation for the said articles on the date of removal from the mill or mill warehouse, the market quotation on the date nearest to the date of removal shall be taken as the basis of the tax. (Section 3, Revenue Regulations No. 7, known as the "Rice and Corn Mills Regulations"). In addition to the record book prescribed by the Regulations to be kept by proprietors or operators of rice and corn mills, they must keep the regular books of accounts prescribed by Section 334 of the Tax Code. The gross income and/or receipts of rice and corn mills proprietors or operators consists of their gross sales of rice and corn belonging to themselves and/or only the milling charges imposed by them, in case they mill only for a fee or compensation rice and corn belonging to others. Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue