6. Section 22 of the principal enactment is hereby amended as follows :-
| (1) in the proviso to subsection (3) of that section, by the substitution for the words from ''goods supplied under a leasing agreement for a period less than three years" to the end of that proviso of the following :- |
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| (2) by the repeal of subsection (4) of that section and by the substitution therefor of the following subsection :-
| | "(4) Where an unregistered person leases out his land and buildings in terms of a tenancy agreement to a registered person, such registered person shall, notwithstanding that the unregistered person is not entitled to claim any input tax in respect of any expenses incurred in connection with the services provided on such land and buildings by another registered person, be entitled to claim such amount of input tax as determined by the Commissioner-General for the expenses incurred by him on such services provided on such land and buildings for the duration of such tenancy agreement if such registered person provides sufficient evidence to the satisfaction of the Commissioner-General to enable him to determine the amount of such input tax which such registered person is entitled to claim."; | | |
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| (3) in subsection (5) of that section, by the substitution for all the words from '"Where an unregistered person" to the words "in respect of such land and buildings :" of the words -
| | "(5) Where any return is furnished under subsection (1) or (2) of section 21 and if at the end of the taxable period to which such return relates the amount of the input tax allowable under this Act 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 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 taxable period in which such excess first arose, shall, subject to the provisions of subsection (3) of section 58, be refunded; and where it is not so refunded the Commissioner-General shall pay interest, at such rate prescribed under section 59 on such amount for the period commencing on the expiration of one month from the end of the taxable period in which such refund became due and ending on the date of the refund subject to the provisions of the proviso to section 59 : | | |
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| (4) in subsection (7) of that section -
| | (i) by the substitution for all the words from "any project" to "from such commencement" of the following :- | | |
| | (ii) by the substitution for all the words from "to make taxable supplies" to the end of that subsection of the following :- | | |
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| (5) by the addition immediately after subsection (8) of that section of the following new subsection :-
| | "(9) Notwithstanding the provisions of the first proviso and second proviso to subsection (3), any registered person who, for any taxable period commencing from January 1,2004, makes a taxable supply, other than any zero rated supply or a supply which has continuously been taxed at the rate of ten per centum, shall be entitled to deduct as input tax seventy five per centum of such input tax paid at the rate of twenty per centum on the value of such supplies received by him : | | |
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Sri Lanka Consolidated Acts