3. Section 3 of the principal enactment is hereby amended as follows :
| (1) in subsection (1) of that section by the substitution for the words "any person or partnership for any relevant year of assessment may be deducted from the relevant income tax payable by that person or partnership for that relevant year" of the words "any person for any relevant year of assessment, shall be deducted from the relevant income tax if any, payable by that person for that relevant year" ; |
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| (2) by the insertion immediately after subsection (1) of that section, of the following new subsection, which shall have effect as subsection (1A) thereof:
| | "(1A) The amount of any service charge paid by any partnership for any relevant year of assessment 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 that relevant year of assessment: the amount of the service charge so apportioned to any partner, shall be deducted from the relevant income tax payable by such partner for such relevant year of assessment (hereinafter referred to as the "first - mentioned relevant year of assessment")."; | | |
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| (3) in subsection (2) of that section by the substitution for the words 'The balance, if any, of such service charge after its deduction in accordance with subsection (1) shall be deducted from the relevant income tax payable by such person or partnership for the relevant year" of the words "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 relevant income tax payable by such person for that relevant year".; |
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| (4) by the insertion immediately after subsection (2) of that section, of the following new subsection, which shall have effect as subsection (2A) thereof:
| | "(2A) The balance, if any, of any service charge apportioned to any partner in accordance with subsection (1A), after its deduction in accordance with subsection (1A) shall be deducted from the relevant income tax payable by such partner for the relevant year of assessment immediately succeeding the first -mentioned relevant year of assessment (hereinafter referred to as the "first succeeding relevant year of assessment")."; | | |
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| (5) in subsection (3) of that section by the substitution for the words "The residue, if any, of the balance of such service charge after its deduction in accordance with subsection (2), shall be deducted from the relevant income tax payable for the relevant year" of the words "The residue, if any, of the balance of such service charge or of the portion of such service charge, as the case may be, after its deduction in accordance with the provisions of either subsection (2) or subsection (2A), shall be deducted from the relevant income tax payable by such person or such partner of such partnership as the case may be, for the relevant year" ; |
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| (6) by the repeal of subsection (5) of the principal enactment and the substitution therefor of the following subsection :
| | "(5) For the purposes of this section and in relation to any relevant year of assessment, the expression | | |
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| (7) by the substitution for the marginal note to that section of the following : "Service Charge to be deducted from the relevant income tax". |
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Sri Lanka Consolidated Acts