Tax Rate of Proprietors or Operators of Rice Mills

September 26, 1958 BIR RULING NO. 602-58 Mr. Inocencio Rondina Araceli, Palawan S i r : In answer to the queries contained in your letter dated May 14, 1958, I have the honor to inform you as follows: (a) Proprietors or operators of rice mills are subject to the 2% miller's tax prescribed in Section 189 of the Tax Code regardless of whether the rice milled by them is only for consumption of their customers or for sale. This is so because the law does not distinguish between rice milled for consumption and rice milled for sale. The books of accounts that you should use and keep may be either the simplified set of bookkeeping records, if your gross quarterly receipts, earnings, or output do not exceed P5,000; or, the journal and the ledger, or their equivalents, if your said receipts, earnings, or output exceed P5,000.00. In addition to the books of accounts mentioned in the preceding paragraph, you should also keep the record book required under Section 9 of Revenue Regulations No. 7. This book consists of two main parts, namely, the debit side and the credit side. The debit side must show the quantity of palay you received for milling; the quantity and value of the rice and its by-products produced therefrom; the date and number of the receipt you issued for the said palay; the name of the owner of the palay, his address, and the date, place of issue, and number of his residence certificate, if any; and the amount of the tax due and withheld from the owner of the milled products. On the credit side the following must be recorded: the kind, quantity and value of palay, rice, and its by-products removed from or sold at the mill or mill warehouse; the date of such removal or sale; the number of the invoice issued for the sale or removal of said products; and the name of the person to whom sold or delivered, his address, and the number, date and place of issue of his residence certificate if any. (b) Pursuant to Sections 10 and 11 of Revenue Regulations No. 7, you should issue a receipt for palay you received for milling and an invoice for rice and its by-products milled and delivered by you. The receipt must contain the name and address of the mill and of the proprietor or operator thereof; the date of its issuance; the name and address of the person to whom it is issued; the quantity, kind of palay received, the current unit and total price thereof; and the signature of the manager or person in charge of the mill. If the palay belongs to you, you must issue the receipt in your name. The invoice must show the name and address of the mill and of the proprietor or operator thereof; the date of issuance; the name and address of the person to whom the invoice is issued; the kind, quantity, cost of milling, unit and total selling price or market value of the milled products sold or delivered; the amount of tax withheld; and the signature of the manager or person in charge of the mill. The aforesaid receipts and invoices must be serially numbered in duplicate and they should be approved by and registered at the Bureau of Internal Revenue prior to their use. In your case, you may present them for approval and registration to the provincial revenue officer in your province or to the municipal treasurer of your town. (c) As regards the regulations regarding the construction of buildings housing rice mills, this Office is not the one charged with the enforcement of such regulations. (d) The 2% tax (C-18a) collected from you on the value of the rice milled and its by-products and the P20.00 annual fixed tax (C-18) are in accordance with Sections 182 and 189, respectively, both of the Tax Code. The P15.00 quarterly municipal fee which you are allegedly paying is a matter of municipal taxation over which this Office has no jurisdiction. LLjur Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue