Dealer of Gravel, Sand and Adobe Stones

August 5, 1959 BIR RULING NO. 393-59 Mrs. Angeles Deslate 19-B Tomas Pinpin Santol, Quezon City M a d a m : In answer to your letter dated July 30, 1959, I have the honor to inform you as follows: 1. As dealer of gravel, sand and adobe stones which you purchased from the producers thereof, you are not subject to the sales tax but only to the graduated fixed annual tax prescribed in section 182 of the Tax Code. 2. As manufacturer of tiles and hollow blocks, you are subject to the fixed and percentage taxes provided by section 182 and 186 of the Tax Code. The cost of sand and gravel and coloring materials used in your manufacture of tiles or hollow blocks is deductible from the gross selling price of the manufactured products if they have been previously subjected to the sales tax. The cost of cement is certainly not deductible because cement is a mineral product which is exempt from the sales tax. cdll Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue