BIR Ruling No. 454-61

December 27, 1961 BIR RULING NO. 454-61 There is returned herewith the docket of the case of Mr. . . . Cruz . . ., involving the sum of . . . as deficiency percentage tax, surcharge and compromise penalty covering the period from 1955 to 1959. LLphil It appears that Mr. Cruz is a master plumber, and as such, he had duly provided himself with the corresponding privilege tax-receipt, C-14(19). It is surprised from the report of the investigating officer that his functions as master plumber consist in actual installation work and signing of application permits for plumbing works. His signature to an application permit is, however, followed by actual supervision of the installation work. During the period in question, he received the sum of P18,000.00 from various clients for signing their applications for permits for plumbing installations. The question now posed is whether or not his receipts from the signing of application permits is subject to tax. Section 191 of the Tax Code includes plumbers among the persons subject to the 3% tax prescribed therein. The law subjects to tax the gross receipts of plumbers without qualification. The gross receipts of a plumber must necessarily consist of all amounts received by him in the performance of his functions. Since the functions of Mr. Cruz as plumber consist of actual installation work and signing of application permits and supervision of installation works in connection therewith, his gross receipts must consist of all amounts received by him from the performance of such functions. LLjur This Office, therefore, is of the view and so holds that Mr. Cruz is subject to the 3% tax on his receipts from the signing of application permits.