BIR Ruling No. 438-61

October 17, 1961 BIR RULING NO. 438-61 The Continental Trading Co. P. O. Box 46 Quezon City Gentlemen : Reference is made to your letter dated July 24, 1961, requesting information regarding the amount of taxes due on the assembly of a two (2) cylinder and four (4) car C.K.D. (Complete-Knock-Down), of French origin. cdta In reply thereto, I have the honor to inform you that locally assembled automobiles are subject to the following tax rates: 1. 50% sales tax when the selling price does not exceed P7,000; 2. 75% sales tax when the selling price exceeds P7,000 but does not exceed P10,000; and 3. 100% sales tax when the selling price exceeds P10,000, pursuant to Section 183, in relation to Section 184(a), both of the National Internal Revenue Code. The aforesaid rates shall, however, be applied to the taxable amount, represented by the difference between the gross selling price and the deductible cost of raw materials. Where such raw materials are imported, the same are subject to the 7% advance sales tax prescribed by Section 183(b), in relation to Section 186, both of the Tax Code, based on the total landed cost thereof, plus the mark-up prescribed by Republic Act No. 594. cdti Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue