BIR Ruling No. 417-61

November 7, 1961 BIR RULING NO. 417-61 Miss Leticia Oliveros 103 Gateway Bldg. Cartimar, Pasay City M a d a m : Reference is made to your letter of the 25th ultimo, requesting information as follows: cdti "I intend to establish a baking shop with several branches of coffee shops which will serve as the main channels for the distribution of my bakery products. In addition to my products, those shops will also serve items that are pertinent to the business in which they are established. Since my estimated total output cannot be completely absorbed by my coffee shops, I plan to sell the excess to other stores. "Please advise me as to what rate of sales tax my bakery products will be subject if it were sold by my coffee shop; if it were sold from my baking shop to other stores." In answer thereto, I have the honor to inform you that, based on the aforequoted circumstances, no sales tax need be paid on the bakery products served at your coffee shops. However, receipts derived from said products are, together with the other receipts of the coffee shops, subject to the 3% tax under Section 191 of the National Internal Revenue Code. cdt On the other hand, sales of bakery products by the coffee shops (not served thereat), as well as those direct from your baking shop, are subject to the 7% sales tax under Section 186 of said Code. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue The above ruling was duly signed by the Commissioner of Internal Revenue on November 7, 1961. (SGD.) P. F. LANDAS Revenue Operations Head (Legal)