Deductibility of the Sales Discounts
BIR Ruling No. 640-58 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Oct 8, 1958
Full text
October 8, 1958 BIR RULING NO. 640-58 The Manila Press, Inc. 492 Nueva Street Manila Gentlemen : I have the honor to acknowledge receipt of your letter dated September 29, 1958 requesting permission to deduct from your monthly gross sales the sales discounts granted by you to your customers who purchase on credit. In reply, I have the honor to inform you that sales discounts are deductible from the gross selling price of a manufacturer for purposes of the sales tax provided that they are determined and legitimately granted at the time of the sales. If the discounts are determined and given after the consummation of the sales, they are not deductible from the gross sales of the manufacturer in computing his monthly sales tax. In view thereof, your request is hereby denied. Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue
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