22.
| (1) A registered person shall, in respect of taxable supplies made by him, account for and pay the tax by reference to such taxable periods at such time and in such manner as may be specified in this Act. |
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| (2) Subject to the provisions of this Act, a registered person is entitled at the end of each such period to credit for so much of his input tax as is allowable under this Act. and then to deduct such amount from any output tax that is due from him. |
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| (3) Where goods or services supplied to a registered person, or goods imported by him, are used or to be used partly for the purposes of a taxable activity carried on or carried out by him and partly for other purposes, the tax on supplies and importations shall be apportioned so that only so much of the tax on such supply or importation as is referable to his taxable activity shall be counted as his input tax. |
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| (4) Where any return is furnished under section 21, and if at the end of any taxable period to which the return relates, the amount of the input tax exceeds the amount of the output tax the excess of the input tax shall not be refunded but shall be set off against the output tax of the next succeeding taxable period and so on. Any residue of such excess as has not been so set off in the period of six months from the end of the period in which such excess first arose shall subject to provisions of section 58 be refunded and where it is not so refunded, the Commissioner-General shall pay interest, at such rate as is prescribed under section 59 in such amount, for the period commencing on the expiration of one month from the end of such taxable period in which the refund became due and ending on the date of the refund : |
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| (5) Any input tax attributable to the supply of goods or services shall not be deducted under subsection (2) in respect of the following :-
| | (i) if the supply is in respect of motor vehicles, other than motor cycles, bicycles, motor coaches provided by an employer for the transportation of his employees, motor vehicles used for excursion tours, for the transportation of tourists, hiring cars, or for the transportation of any goods ; | | |
| | (ii) if the supply of goods or services is not connected with the taxable activity ; | | |
| | (iii) if the supply is not supported by a tax invoice, or a customs goods declaration or other authenticated document issued by the Director-General of Customs. | | |
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Sri Lanka Consolidated Acts