Refund of the Tax Paid to the Philippine Air Force

October 24, 1960 BIR RULING NO. 472-60 The Acme Gas Corporation 17 Mirasol St., Cubao Quezon City Gentlemen : In answer to the queries contained in your letter dated September 7, 1960, I have the honor to inform you as follows: As a manufacturer, your sales are not subject to the withholding provisions of Republic Act No. 1051, as implemented by Revenue Regulations No. V-40 (not Revenue Regulations No. V-41). Such being the case, the accounting or disbursing officer of the Philippine Air Force need not deduct and withhold any tax on the money payments due you by reason of sales made to it. Being a manufacturer subject to the 7% sales tax under section 186 of the Tax Code, you are entitled to the privilege of deducting the cost of raw materials used in manufacturing your products from the gross selling price of the latter, provided that said raw materials had previously been subjected to the same tax. The tax you paid to the Philippine Air Force in accordance with said law and regulations may be refunded or credited to you by filing a written claim therefor with the Commissioner of Internal Revenue within two (2) years from the date the same was paid. In case of refund of the tax, it can no longer be deducted from any tax subsequently becoming due from you. Such deduction can only arise in the case of tax credit. LLphil Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue