Lumber Dealers (those who buy and sell) are Not Subject to Any Percentage Tax on Their Sales

November 19,1959 BIR RULING NO. 597-59 Mr. Patriotico V. Moreno Hotel-Lumber & General Merchant Romblon, Romblon S i r : In reply to your inquiry dated October 26, 1959, I have the honor to inform you as follows: 1. Lumber dealers (those who buy and sell) are not subject to any percentage tax on their sales. They are subject only to the graduated fixed annual tax as prescribed by section 182 of the Tax Code. 2 A construction work contractor is subject to 3% tax on his gross receipts. The gross receipts of a contractor consist of the cost of both labor and materials, if both are furnished by him, or only the cost of labor if the materials are not furnished by him. 3. The sales of a lumber concessionaire to the Bureau of Public Works are subject to the 7% sales tax. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue