Credits against sales tax due
Sec. 1. Credits against sales tax due. Any specific or percentage tax paid under Titles IV and V of the National Internal Revenue Code on domestically manufactured, processed or produced, or imported raw material, part, accessory or other article locally purchased or imported by the manufacturer for conversion into or intended to form part of the finished products shall be credited against the sale tax due on the finished product enumerated in Sections 194, 195, 196, 197, 199 (a) and 201 of the same Code: Provided, however, that in case of total tax paid on the raw material, part, accessory or other article exceeds the amount of the sales tax due on the finished product, the excess shall be credited against the sales tax liability of the manufacturer for the succeeding taxable quarter or quarters; and, Provided, further, that the amount of tax on the raw material, part, accessory or other article shall be indicated as a separate item in the sales invoice; and, Provided, furthermore, that any tax credit sold, transferred, disposed of, or, for any other reason, can no longer be used in the manufacture of the finished product, shall either be deducted from any unused tax credit or paid as a part of the tax due in the quarter following the disposal.