Deductibility of Sugar from the Gross Selling Price or Gross Value
BIR Ruling No. 570-58 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Sep 24, 1958
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September 24, 1958 BIR RULING NO. 570-58 Mr. Jesus E. Villamor P. O. Box 65 Cebu City S i r : In reply to your letter dated June 6, 1958, I have the honor to inform you that where the articles subject to tax under Section 186 of the Tax Code are manufactured out of materials likewise subject to tax under said section and Section 189, the total cost of such materials, as duly established, shall be deductible from the gross selling price or gross value in money of such manufactured articles. Accordingly, the sugar used by your client is deductible from the gross selling price or gross value in money of the bread manufactured in his bakery for purposes of computing the percentage tax pursuant to Section 186 of the Tax Code. cdtech Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue
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