Deductibility of the Cost of Perfume Essence

October 13, 1958 BIR RULING NO. 582-58 Mr. Felipe B. Ollada 505 China Bank Building Manila S i r : This is with reference to your letter dated September 4, 1958, for and on behalf of your client, the Shiro (Philippines) Inc., requesting information as to whether or not the cost of perfume essence used as raw material in the manufacture of cleanser is deductible from the gross sales of the said manufactured product. In reply thereto, I have the honor to inform you that perfume essences are classified under Section 184(c) of the Tax Code and, therefore, are subject to the 50% advance sales tax therein imposed. Such being the case, the cost of perfume essences used in the manufacture of cleanser is not deductible from the gross sales of the latter. llcd Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue