Tax Status of a Person Converting Big Rolls of Bond Paper and Kraft Paper

September 12, 1960 BIR RULING NO. 407-60 Messrs. Stewart, Cunanan & Co. Certified Public Accountants 107-13th Street, Port Area M a n i l a Gentlemen : In reply to your letter dated August 29, 1960, I have the honor to inform you as follows: 1. A person coverting big rolls of bond paper and kraft paper imported by him into commercial sizes and for sale is considered a manufacturer, subject to the payment of the annual fixed tax in the amount of P20.00 and 7% tax on his sales thereof, as prescribed in section 182 of the Tax Code, respectively. 2. In accepting job orders from customers for coverting paper materials belonging to the latter, into sizes desired and in accordance with customer's specifications, your client is considered a contractor and to #% tax on its gross receipts from such services. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue