25.
| (1) Where a registered person, has issued a tax invoice and accounted for an incorrect amount of tax by undercharging or overcharging tax on a supply made to another registered person, he shall be entitled to issue to such other person a tax debit note or a tax credit note, as the case may be for the purpose of adjusting the amount of tax so undercharged or overcharged. |
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| (2) Upon the issue of the tax debit note or tax credit note as the case may be, in respect of a supply and in relation to the period in which such note was issued-
| | (a) the supplier shall pay as output tax such amount of the tax that was chargeable in respect of the supply as is in excess of the amount that was accounted for. or deduct as input tax such amount as was accounted for as output tax as exceeds the amount of tax chargeable ; and | | |
| | (b) the person to whom the supply was made shall pay as output tax such amount of the tax that was deducted by him as input tax as exceeds the proper amount that should have been deducted or deduct as input tax such amount as was deductible as exceeds the actual amount deducted by him, as the case may be. | | |
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| (3) The tax debit note or tax credit note referred to in subsection (1) shall be in the specified form. |
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Sri Lanka Consolidated Acts