BIR Ruling No. 400-61

August 11, 1961 BIR RULING NO. 400-61 Arguelles & Co., Inc. 379-D Callejon Matienza San Miguel, Manila Attention : Mr . Eulogio V . Arguelles Executive Vice-President Gentlemen : This is with reference to your letter dated May 20, 1961, requesting information as to the tax liability of a business concern under the following facts: cdtech "1. We own and operate a coconut farm, the products of which we will preserve and market in containers. "2. Specifically, we are going to harvest 'Tuba' from our coconut trees. This will be filtered and cleared, pasteurized to preserve it and make it safe, and bottled in sanitary containers. In the bottling, elements lost in pasteurization are re-integrated to improve keeping qualities and taste. Essentially, the bottled product will be the same regular tuba now being sold publicly except that this bottled tuba will be cleaner, safer, and will keep for a long time without deteriorating. "3. We plan to sell the bottled 'tuba' to retailers and food establishments in the City and in the surrounding suburbs. "Please advise us what taxes we will pay as farmer-producer selling tuba to retailers. We would also like to know what additional taxes, if any, will have to be paid by retail stores and small restaurants who sell our tuba to the consuming public." cdti Based on the foregoing facts as presented, I have the honor to inform you that if, as tuba producer, your daily production exceeds 200 gauge liters you will be subject to the brewer's fixed annual tax of P1,000.00, pursuant to Sections 182(A)(6)(a) and 194(a) of the Tax Code, as amended. However, if your daily production of tuba does not exceed 300 gauge liters, you are not subject to any privilege (fixed) tax, nor to the sales (percentage) or specific tax. Stores selling at retail your tuba to the consuming public are subject only to the graduated fixed annual tax prescribed in Section 182(A)(2) of the Tax Code, the initial payment of which is P10.00. Restaurants selling at retail tuba are not subject to the retail dealer in fermented liquor's fixed tax. However, their sales of tuba shall form part of their taxable gross receipts. cdta Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue