VAT Ruling No. 041-88

March 1, 1988 VAT RULING NO. 041-88 102 (a)-000-00-041-88 B. Remotigue Agro-Industrial Development Corp. 52-54 E. Abada St.,Loyola Heights Quezon City Attention: Mr . Doroteo J . Jarantilla Vice-President S i r : This has reference to your letter dated February 13, 1988, wherein you mentioned that your company owns certain machineries and accepts order from others for purposes of milling and processing of their raw materials for a certain fee. It is also mentioned that since you started business up to December 31, 1987, you have been paying 4% quarterly tax. Your query now is on whether or not your establishment falls under the classification of Sec. 102 (a) Value-added tax on sale of services or Sec. 103 (q) Exempt transactions leasing of real property of the Tax Code as amended by E.O. 273. In reply, please be informed that since you render service for a fee and used to pay the 4% contractor's tax, you are classified under Sec. 102 (a) which provides that your annual gross receipts are subject to the 10% VAT. cdtech Very truly yours, BIENVENIDO A. TAN, JR. Commissioner of Internal Revenue