Tax Liability of a Manufacturer of Heating Elements for Flat Iron

December 14, 1959 BIR RULING NO. 649-59 Mr. Gregorio J. Mariano 1396 Franco Street Tondo, Manila S i r : In reply to your letter dated November 24, 1959, I have the honor to inform you as follows: 1. As manufacturer of heating elements for flat iron, you are liable to a fixed annual tax of twenty pesos which may be paid annually or semi-annually. You must pay the tax before engaging in business. 2. On your sales of said heating elements you shall pay a sales tax equivalent to 30% of the gross selling price, less the cost of raw materials used which were previously subjected to the same rate of tax as the manufactured product. 3. Aside from the above taxes which are due and payable on your business, you are also subject to the income and residence taxes. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue