BIR Ruling [UN-019-94]

January 17, 1994 BIR RULING [UN-019-94] Macamay & Donato Law Office Suite 303, Agustin Building No. 139, Malakas Street Diliman, Quezon City Attention: Atty . Donardo S. Donato Gentlemen : This refers to your letter dated November 17, 1993 requesting for a ruling on the legal effect of a receipt issued for a transaction in the year 1990 but was printed in the year 1991. cdi It is represented that your client, Dr. Remedios G. Zulueta, the Manager of the Human Resources Development Department of the Philippine Ports Authority (PPA) secured the services of Golden Crest Services (GCS) to secure plane tickets of sixty-three (63) PPA personnels who will be attending a study in Singapore dubbed as Singapore Grant; that the said "Grant" was free, and expenses will be reimbursed by the Singapore Government; that the participants have attended the "Grant", and the Philippine Government was reimbursed of the corresponding money value of the airplane tickets when the official receipts issued by GCS were sent to Singapore; that a problem arose when an entity, Explorer Phil., Inc. (Explorer), came into the picture when it started making a claim with PPA for the payment of the tickets it allegedly delivered to PPA; that it was found out that GCS had secured the tickets from Explorer, and the latter secured the same with another travel agency; it is contended by Explorer that GCS did not pay for the plane tickets; that since PPA has no brevity of contract with Explorer nor with any other travel agency except GCS, it did not act on the claim of Explorer as PPA had already paid the whole amount of the tickets to GCS. In reply, please be informed that a temporary receipt is not merely an evidence of a sale but necessarily an evidence of payment. This is obvious from the provisions of Section 238 of the Tax Code, as amended, to the effect that the issuance of an invoice is required that moment there is a already a sale or transfer of merchandise or services rendered. In the instant case, the temporary receipt was issued in the absence of an official receipt which was in the printing process. In other words, the temporary receipt was issued by GCS upon payment by the PPA. Further, the subsequent issuance of GCS of an official receipt ratifies the transaction entered into between PPA and GCS which was evidenced by a temporary receipt only (BIR Ruling No. 046-89). Very truly yours, JAIME M. MAZA Assistant Commissioner (Legal Service)