Clarification of Par. 3, General Circular No. V-272

No date supplied BIR RULING NO. 652-58 The Regional Director B.I.R. Regional District No. 5 San Pablo City S i r : With reference to your letter dated June 26, 1958, requesting a clarification of paragraph 3, Application and Enforcement, of General Circular No. V-272, publishing the decision of the Supreme Court in the case entitled "The Collector of Internal Revenue, et al. vs. Marcelino T. Viduya, et al,", you are informed that said paragraph means as follows: 1. Ordinary articles purchased from tax-exempt individuals prior to August 24, 1956 are exempt from the sales or compensating tax; but those purchased from tax-exempt entities during the same period are subject thereto. 2. Luxury or semi-luxury articles purchased from tax-exempt individuals prior to June 16, 1956 are not subject to the tax; but those purchased from tax-exempt entities during the same period are subject thereto. Purchases from tax-exempt entities are subject to tax, irrespective of the class of article nor date of purchase thereof. (Go Cheng Tee and Saura cases). However, purchases of luxury and semi-luxury articles from tax exempt individuals became taxable from June 16, 1956 (Rep. Act No. 1511), while purchases of ordinary articles from such individuals became taxable from August 24, 1956 (Rep. Act No. 1612). cdt Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue