Specific Tax Exemption on Educational Films

October 6, 1958 BIR RULING NO. 538-58 Westinghouse Electric Co., Ltd. P.O. Box 1154, Manila Gentlemen : In answer to your letter of the 2nd instant, requesting exemption from, among others, the specific tax on the films sent to you by your head office in New York for the purpose of lending them free of charge to the Mapua Institute of Technology, Manila, which in turn will show them to its faculty members and students, I have the honor to inform you that, it appearing that said films are educational in nature, your request is hereby granted. However, said films are subject to the 7% compensating tax, based on the total landed costs thereof, pursuant to Section 190, in relation to Section 186 of the National Internal Revenue Code. cdt Please be further informed that the customs duties and/or other charges which may be due on the films in question are within the jurisdiction of the Bureau of Customs, and not of this Office. This serves as authority for the Commissioner of Customs to release the aforesaid films upon the prepayment of the compensating tax. Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue