BIR Ruling No. 445-61

October 13, 1961 BIR RULING NO. 445-61 In answer to your letter dated August 18, 1961, I have the honor to inform you that the business of manufacturing electric flat irons and compression kerosene stoves is subject to the fixed annual tax of P20.00 and to the sales (percentage) tax of 30% prescribed in Sections 182(A)(1) and 185(i) of the Tax Code. If the manufacture of said products is done in one and the same establishment, only one fixed tax need be paid. For the purpose of computing the sales tax on the flat irons, the cost of materials which had been previously subjected to 30% sales tax and used in the manufacture thereof is deductible from the gross selling price of the former. Likewise, the cost of materials which had been previously subjected to 30% sales tax and used in the manufacture of kerosene stoves is deductible from the gross selling price of the latter. cdphil