Tax Liability of a Mere Dealer of Cement

December 19, 1958 BIR RULING NO. 723-58 Mr. Chua Chuy Assistant Manager Calumpit Asia Lumber Calumpit, Bulacan S i r : Reference is made to your letter dated December 6, 1958 stating the following: cdll "The Calumpit Asia Lumber is a dealer in lumber and hardware provided with C-13 Privilege Tax Receipt. Sometimes it participates in government bids and supplies construction materials and one of which is cement. It purchases cement from distributors like the Amon Trading, Luzon Commodities and Security Trading. May you please render an opinion or a ruling at your earliest convenience as to whether the above cement is subject to 7% tax in accordance with Section 186 of the National Internal Revenue Code as tax on the original sales of the said cement. Is it not that the said distributors or first dealers are to pay the 7% tax and not subsequent retailers?" In reply thereto, I have the honor to inform you that as a mere dealer of cement you are subject only to the graduated fixed annual tax prescribed by Section 182(A)(2) of the National Internal Revenue Code. Being Already provided with a C-13 privilege tax-receipt, your sales of cement will only have to be considered in your gross annual sales for the purpose of determining the amount of the tax payable by you. It may be stated in this connection that the sales tax is due and payable only on the original sales by manufacturers and producers of the articles manufactured or produced by them. llcd Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue