Taxability of an Owner of a Bakery

October 7, 1958 BIR RULING NO. 643-58 Mrs. Librada T. Arceo 175 Roxas Street Guihulngan, Negros Oriental M a d a m : Anent your query of August 25, 1958, I have the honor to inform you that, as owner of a bakery, you are considered a manufacturer within the purview of the Tax Code. As manufacturer, you are subject to percentage tax at 7% of the gross selling price of the bakery products manufactured less the cost of flour and other raw materials used in the manufacture thereof which were previously taxed under Sections 186 and/or 189 of the said Code. Furthermore, you are subject to a privilege tax of P20.00. cdpr You are required to keep a set of simplified bookkeeping record wherein you will record your daily sales and transactions if your gross quarterly sales do not exceed P5,000.00; otherwise, you must keep a journal and ledger or their equivalents. For each sale of P2.00 or more, a sales or commercial invoice must be issued to the purchaser. However, in case of sales at less than P2.00, receipts need not be issued but unless a receipt is issued the transaction must be recorded in the petty sales book, the entries therein to be summarized at the end of the business day and the total transferred to the journal or internal revenue sales book. If your total gross sales for the preceding year exceed P20,000.00, every sale and/or transaction effected must be covered by an invoice irrespective of the amount of sale or transaction. cdll Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue