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(NAR) VOL. 22 NO. 2, APRIL - JUNE 2011

[ PPA MEMORANDUM CIRCULAR NO. 03-2011, May 05, 2011 ]

AMENDMENTS TO PPA MEMORANDUM CIRCULAR NO. 03-2010 ENTITLED “GUIDELINES ON THE COLLECTION FROM PORT USERS/ CUSTOMERS WITH REVOLVING FUND”



1. Objective

For further guidance of all concerned, this is Amendments to PPA Memorandum Circular No. 03-2010 entitled Guidelines on the Collection from Port Users/Customers with Revolving Fund” is hereby issued.

2. Amendments

The following sections of PPA Memorandum Circular No. 03-2010 are hereby amended, viz:
4.2. Initial Deposit to the Revolving Fund (RF) Account

4.2.1   x x x
4.2.2 x x x
4.2.3 The Operating Unit (OU) shall issue a “Non-VAT Official Acknowledgement Receipt” evidencing the initial deposit made by the RF Customer and treated in the books as guaranty deposit under Guaranty Deposits Payable-Revolving Fund. The existing inventory of the “VAT Exempt Official Receipt” shall be used until exhausted and duly stamped with “Non-VAT Official Acknowledgment Receipt” and the respective TIN with Branch Code and address of the PDO-PMO, in accordance with BIR regulations.

4.3 Creation of RF Invoice/Billing

4.3.1. x x x
4.3.2   x x x
4.3.3   x x x

4.4 Application/Charging of RF Invoice Against the Revolving Fund

4.4.1 The RF Invoice shall be created per transaction and charged/applied against the Revolving Fund of the RF Customer.
4.4.2. The RF Customer, duly designated by BIR as Witholding Agent in its BIR Certificate of Registration is authorized to withhold 2% EWT, hence upon the issuance and charging of the RF Invoice against the RF, the corresponding 2% EWT shall be deducted and recorded in the books as Prepaid Tax-EWT.

4.4.3 The OU can view the RF balances in the “RF Summary by Debtor” of Listing of RF transactions by OU and RF Customer.

4.5 Replenishment of the Revolving fund

4.5.1.  x x x
4.5.2.  x x x
4.5.3. The batch of invoices to be replenished shall be reflected in the List of Invoices by RF Customer as shown below:

Pls. See Image at Page 1183


4.5.4. The Servicing PMO shall ensure that the BIR Form 2307 corresponding to the Expanded Witholding Tax in the “List of Invoices by RF Customer, which has been deducted and recorded during invoicing, shall be secured from the RF Customer.

4.5.5. The OU shall issue an “Official Receipt” for the replenishment.  This will be used by the RF Customer for claiming their Input VAT.

4.5.6. For this purpose, the replenishment will also be recorded as Guaranty Deposits Payable Revolving Fund.  However, the system will replicate in the Official Receipt “Payment Summary” the EWT, the VAT Sales and VAT Amount/Zero Rated Sales/VAT Exempt Sales as indicated in the RF Invoices issued and charged against the Revolving Fund; recorded in the Books; and summarized  in the “List of Invoices by RF Customer.”

4.5.7. The Servicing PMO (for Decentralized RF Customer) of HO Treasury (for the Centralized RF Customers) shall periodically verify the RF balance their respective RF Customers to ensure that it complies with the minimum maintaining balance.

3. Saving Clause

All other provisions of PPA Memorandum Circular No. 03-2010 entitled “Guidelines on the Collection from Port Users/Customers with Revolving Fund” shall remain valid.

4. Effectivity

This Memorandum Circular shall take effect 15 days after its publication in a newspaper of general circulation.


Adopted: 05 May 2011


(SGD.) JUAN C. STA. ANA
General Manger
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