BIR Ruling [UN-215-95]

June 15, 1995 BIR RULING [UN-215-95] Manila Mining Corporation 20th Floor, BA-Lepanto Bldg. 8747 Paseo de Roxas Makati City Attention: Mr . R . F . Chanyungco Vice President-Treasurer Gentlemen : This refers to your letter dated April 20, 1995, requesting for the automatic offsetting of your excise tax liability for the first quarter of 1995 in the amount of P5,446,376.16 against your VAT input tax for the first quarter of 1994 in the amount of P25,417,035.09 allegedly pending approval by the Department of Finance. In reply, please be informed that your request cannot be granted for lack of legal basis. Any claim for tax credit or refund of alleged excess input tax by a VAT registered taxpayer pursuant to Sections 104 and 106 both of the Tax Code, as amended by E.O. No. 273, shall be subject to verification by this Office pursuant to existing rules and regulations. Accordingly, until after the amount claimed as input taxes attributable to goods exported, or on sales which are zero-rated or effectively zero-rated or input tax paid on capital goods imported or locally purchased, to the extent that such input taxes have not been applied against output taxes have been finally determined to be legally due to the taxpayer and a tax credit issued therefore, no automatic offsetting of the amount claimed as input tax against the tax liability of the taxpayer can be allowed. However, a Tax Credit Certificate duly issued by this Office shall, upon proper application, be allowed to be used in payment of excise and other tax liabilities of taxpayers, including mining companies like you. (BIR Ruling No. 415-93 dated October 15, 1993) cd Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)