3.
| (1) The amount of any service charge paid by any person for any relevant quarter shall be deducted from the income tax if any, payable by that person for the year of assessment of which that relevant quarter is a quarter (hereinafter referred to as the "first - mentioned year of assessment). |
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| (2) The amount of any service charge paid by any partnership for any relevant quarter shall be apportioned among the partners of such partnership in the ratio in which such partners share the profits or losses of such partnership for the year of assessment of which that relevant quarter is a quarter. The amount of the service charge so apportioned to any partner, shall be deducted from the income tax, if any payable by such partner for the year of assessment of which that relevant quarter is a quarter (hereinafter referred to as the "first - mentioned year of assessment"). |
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| (3) The balance, if any, of such service charge paid by any person, after its deduction in accordance with subsection (1) shall be deducted from the income tax payable by such person for the year of assessment immediately succeeding the first mentioned year of assessment (hereinafter referred to as the "first succeeding year of assessment"). |
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| (4) The balance, if any, of any service charge apportioned to any partner in accordance with subsection (2), after its deduction in accordance with subsection (2), shall be deducted from the income tax payable by such partner for the year of assessment immediately succeeding the first mentioned year of assessment (hereinafter referred to as the "first succeeding year of assessment). |
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| (5) The residue, if any, of the balance referred to in subsection (3) or subsection (4), as the case may be, after its deduction in accordance with subsection (3) or subsection (4) as the case may be, shall be deducted from the income tax payable by such person or such partner of such partnership, as the case may be, for the year of assessment immediately succeeding the first succeeding year of assessment (hereinafter referred to as the "second succeeding year of assessment"). |
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| (6) In no circumstances shall -
| | (a) the aggregate deduction of the amount of the service charge paid by any person or paid by any partnership and apportioned to any partner, as the case may be, from the income tax payable by such person or such partner of such partnership, as the case may be, exceed the amount of such service charge, | | |
| | (b) the remaining portion, if any of the residue referred to in subsection(5) after its deduction in accordance with subsection (5), be deducted from any income tax payable for any year of assessment succeeding the second succeeding year of assessment. | | |
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Sri Lanka Consolidated Acts