Basis of Computation of the Ad Valorem Tax on Cement
BIR Ruling No. 522-59 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Oct 22, 1959
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October 22, 1959 BIR RULING NO. 522-59 MEMORANDUM FOR The Revenue Operations Executive (Assessment) B.I.R., Manila Information received by this Office is to the effect that certain cement factories have been paying the ad valorem tax on the cement produced by them based on the market value of the limestone, clay and rocks used in the manufacture or production of the cement, which is contrary to law. The ad valorem tax on cement shall be computed based on the actual market value of the cement as a finished product. Where the cement is sold, the actual market value thereof is the gross selling price. In this connection, it is desired that appropriate action be taken to the end that the ad valorem tax on cement is collected based on the correct tax base. aisadc MISAEL P. VERA Deputy Commissioner of Internal Revenue
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