Computation of the 7% Tax Imposed Under Section. 186 of the NIRC

September 29, 1960 BIR RULING NO. 440-60 Messrs. Arturo A. Alafriz & Associates Attorneys & Counsellors At-Law Suites 406-408, Regina Building, Escolta M a n i l a Gentlemen : In reply to your letter dated August 16, 1960, I have the honor to inform you, that in the computation of the 7% tax imposed under Section 186 of the National Internal Revenue Code, the cost of fresh meats purchased from vendors in public markets and guava, nanca and pineapple fruits purchased from farmers and growers thereof, to be used in the manufacture of frozen and canned foods are not deductible, considering the fact that the same are not subject to tax under section 186 of the Tax Code. It is further informed that Section 186-A of the Tax Code, finds no application in this case, because the old section has reference to raw materials purchased from tax-exempt industries. liblex Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue