Exemption from Tax of Impending Shipment in Barter of Sugar

November 15, 1960 BIR RULING NO. 485-60 The Manager Philippine Producers' Cooperative Marketing Association, Inc. (Manila Office) Rm. 208 Singson Building M a n i l a S i r : Reference is made to your letter dated November 15, 1960 requesting exemption from tax of your impending shipment in barter of your sugar. In reply thereto, I have the honor to inform you that, as an association duly organized under the provisions of Act No. 3425, as amended by Republic Act No. 702, you are exempt, among others, from the sales tax and percentage taxes of whatever nature and description otherwise due from your authorized activities, pursuant to section 48 of said Act. Inasmuch as the marketing of the sugar of your members is one of the primary purposes for which cooperative marketing association are organized under said Act and inasmuch as barter is an act of marketing, this Office believes and so holds that your incoming shipment is exempt from both the advance sales and compensating taxes. (BIR Ruling No. 455, s. of 1960) Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue