REVENUE MEMORANDUM CIRCULAR NO. 6-2006 issued on January 24, 2006 provides basic questions and answers to clarify the treatment of input tax accumulated as of October 31, 2005 in relation to the 70% cap effective November 1, 2005, as provided for in Revenue Regulations (RR) No. 14-2005, as amended by RR No. 16-2005, implementing Republic Act No. 9337.