Question & AnswerQ&A (BIR REVENUE REGULATION NO. 7-92)
The objective is to prescribe policies and guidelines to control and monitor the installation, operation, and use of documentary stamp (DS) metering machines pursuant to Section 245 and Section 4 of the National Internal Revenue Code.
Any person or business entity may apply to operate a DS metering machine and install it in their office or any designated place.
CPED serves as record custodian of DS metering machines and related records, conducts formal investigations on irregularities, recommends cancellation of permits and confiscation of 'dies' for tampered machines, and keeps record of obsolete and unused DS metering machines.
The Chief, Collection Branch supervises loading, reloading, and sealing of machines with COA presence, keeps custody of the sealer, conducts meter readings, recommends repairs, performs quarterly inspections, and submits quarterly reports on collections and inspections.
They must file an application for a permit to operate with the Assistant Commissioner (Collection Service) through the CPED, and register their machines if authorized before these regulations within one month after publication.
The taxpayer/user must request in writing to the Chief, Collection Branch who will notify the resident COA auditor. Loading/reloading is done in the presence of the Chief, Collection Branch and COA auditor, and records are kept for audit verification.
The Chief, Collection Branch attaches a wire and lead seal to the machine and properly seals it with a 'documentary stamp meter sealer'.
Each machine has two padlocks and keys—one kept by the taxpayer/user and one by the Chief, Collection Branch. The machine can only be opened with a written request and the presence of the taxpayer/user, Chief, Collection Branch, and COA auditor or their representatives.
They must submit a monthly summary report on documentary stamp transactions/loads to the Chief, Collection Branch, including cumulative sales and credit balance, subject to verification.
Cancellation may occur if the business ceases operation (surrender of the 'die'), machine is obsolete or worn out, machine unused for six months without valid reasons, or irregularities and anomalies are found in use or operation.
A written request for repair is submitted for approval to the Regional Director through the Chief, Collection Branch. Repairs are undertaken only by authorized persons and a report on repairs is submitted afterward.
The Chief, Collection Branch or authorized representatives conduct quarterly inspections including physical checks and review of the Official Control Book for DS Metering Machine Daily Transactions.
The Chief, Collection Branch who discovered the anomaly submits a written report to the Chief, CPED within 24 hours. CPED conducts a formal investigation and submits a report to the Assistant Commissioner (Collection Service) within 10 days.
They must notify the Chief of the Collection Branch in writing specifying the new location, Revenue District Office and Revenue Region. The Chief of Collection Branch informs CPED for control and inventory.
The 'die' is the module of the metering machine that prints documentary stamps for clearance certificates, which must be surrendered if business ceases or permit is revoked.