S. No. 1141 H. No. 5260 / 89 OG No. 19 2446 (May 10, 1993) ; 4 VLD 21 2d ; Times 4/19/93 ; Malaya 4/10/93 ; Journal 4/10/93
"(c) Withholding of Creditable Value-Added Tax. - The Government or any of its political subdivisions, instrumentalities or agencies, including government-owned or controlled corporations (GOCCs) shall, before making payment on account of its purchase of goods from sellers and services rendered by contractors which are subject to the value-added tax imposed in Sections 100 and 102 of this Code, deduct and withhold the value-added tax due at the rate of three percent (3%) of the gross payment for the purchase of goods and six percent (6%) on gross receipts for services rendered by contractors on every release or installment payment which shall be creditable against the value-added tax liability of the seller or contractor.SEC. 2. The Secretary of Finance shall, upon the recommendation of the Commissioner of Internal Revenue, promulgate the necessary rules and regulations for the effective implementation of the provisions of this Act.
"The value-added tax withheld under this section shall be remitted within ten (10) days following the end of the month the withholding was made."