Income-Generating Activities of Non-Stock Corporations

May 27, 1987 BIR RULING NO. 137-87 157 (x) 000-00 137-87 Gentlemen : This refers to your letter dated March 25, 1987 stating that you are an awardee of a contract from the Ministry (now Department) of Education, Culture and Sports for the manufacture and door-to-door delivery of grader's desks. You now want information from this Office concerning basic taxation scheme, the kind and rate of percentage tax you will pay and the manner of remittance of payment to this Office. In reply, please be informed that you come within the purview of a manufacturer of desks under Section 157(x) of the Tax Code as amended, subject to the annual fixed tax of P200.00 and to the 20% sales tax pursuant to Sections 161(1) and 163(4) of the same Code. You should file a quarterly return of the amount of your gross sales and pay the tax due thereon within twenty (20) days after the end of each quarter, pursuant to Section 162 (a)(1) of the Tax Code as amended. However, the money payments to you by DECS are not subject to the withholding provisions of Republic Act No. 1051. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner