14. Section 22 of the principal enactment is hereby amended as follows:-
| (1) in subsection (2) of that section by the substitution enactment. for the words "any output tax that is due to him", of the words "any output tax that is due to him: Provided however, any person adopting a payment basis of accounting, is entitled to claim credit on so much of his input tax as is allowable under this Act, only in respect of a supply for which the payment has been made by such person."; |
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| (2) in subsection (4) of that section by the substitution for the words "the expiration of one month", of the words " the expiration of two months"; |
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| (3) by the repeal of the proviso to subsection (4) of that section and the substitution therefor of the following proviso :- |
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| (4) in paragraph (1) of subsection (5) of that section by the substitution for the words "for the transportation of any goods;", of the words "for the transportation of any goods or motor vehicle forming part of any stock in trade of any taxable activity"; |
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| (5) by the addition immediately after subsection of that section of the following subsections:-
| | "(6) Where any registered person has proved to the satisfaction of the Commissioner-General that such person has commenced any business in Sri Lanka, and undertakes to make the taxable supplies in respect of such business within a period of thirty months from the date of such commencement, the Commissioner-General may allow credit for input tax in respect of such business subject to such conditions as may be specified by him. | | |
| | (7) Notwithstanding the provisions of section 33, any refund in excess of the amount due, or any excess amount of input tax claimed shall be assessed by an Assessor on the registered person to whom the refund has been made or making such claim, as the case may be, and such amount shall be deemed to be tax in default on the first day of the taxable period in which the excess of input tax first arose resulting in such refund or excessive claim in excess as the case may be.". | | |
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Sri Lanka Consolidated Acts