Articles Sold to Government Bureaus, Offices, Agencies or Instrumentalities Purchased from Local Importers

November 18, 1959 BIR RULING NO. 585-59 Hercules Enterprises Corp. 888 Rizal Avenue M a n i l a Gentlemen : In answer to your letter of the 16th instant, I have the honor to inform you that if, as represented therein, the articles you sell to government bureaus, offices, agencies or instrumentalities are merely purchased by you from local importers, your subsequent sales thereof to said bureaus, offices, agencies and/or instrumentalities are no longer subject to the sales or other taxes, the same having been already paid by the importer before the release thereof from customs custody. Accordingly, no tax need be deducted and withheld, pursuant to the withholding provisions of Republic Act No. 1051, as implemented by Revenue Regulations No. V-40, from money payments due you by reason of the aforementioned sales. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue