Performing Added Service to Customers, Without Additional Charge or Payment

December 7, 1959 BIR RULING NO. 613-59 The Manager Royal Bazar 272 Villalobos, Quiapo M a n i l a S i r : Reference is made to your letter stating the following: "A store dealing principally in the sale of textiles, laces, threads, buttons and belt buckles, performs as an added service to its customers, without additional charge or payment, the covering of buttons and buckles with cloth supplied by the customer. In other words, when a customer buys clothing material, she usually requests the storeowner to cover the buttons or buckles she will use with the same clothing material which she had purchased. For this, the storeowner does not charge anything. The customer pays only for the buttons or buckles she had bought. This added service is resorted to by the storeowner for purposes of getting the goodwill of the customers and also in the hope that out of gratitude, they will continue to patronize the store and bring other customers in." In reply thereto, I have the honor to inform you that, under the above-quoted facts, you are not considered as manufacturer. prcd Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue