Tax Liability of a Manufacturer Using Materials Financed by the U.S. Aid Fund

September 23, 1960 BIR RULING NO. 415-60 Marcelo Steel Corporation Malabon, Rizal Gentlemen : Reference is made to your letter of the 14th instant, requesting information as follows: "Whether a manufacturer using materials financed by the U.S. Aid Fund is exempted from the payment of sales tax and whether sales made by such manufacturer to a contractor who in turn uses the same materials is exempt from the payment of sales tax for sales made to Government Projects." In answer thereto, I have the honor to inform you that both of the sales mentioned above are subject to the corresponding sales tax, this Office not being aware of any basis upon which exemption may lie in those cases. aisadc Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue