22.
| (1)A Registered person shall, in respect of any taxable supply made by him, account for and pay the tax by reference to such taxable period 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 shall be entitled at 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 form him : |
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| (3)Where a supply of goods or services received by a registered person, or goods imported by such person are used or are to be used partly (or the purposes of a taxable activity carried on or carried out by such person on which tax can be levied and partly for other purposes, the tax on such supplies and importation shall be apportioned so however that only so much of the tax on such supplies or importation as is referable to his taxable activity on which tax can be levied shall be counted as his input tax. |
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| (4)Where any return is furnished under subsection (1) or (2) of 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, subject to the provisions of section 58 be refunded. Where such excess is not so refunded, the Commissioner-General shall pay interest at the rates prescribed under section 59 on such amount, for the period commencing on the expiration of two months from the end of the taxable period in which such refund became due and ending on the date of the refund : |
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| (5) Where an unregistered person leases out his land and buildings in lands of a tenancy agreement, lo a registered person, such registered person shall notwithstanding that the unregistered person is not entitled to claim any input tux in respect of any expenses incurred in connection with the services provided on such land and building, be entitled to claim input tax for the expenses incurred by him in connection with the services provide on such land for the duration of such tenancy agreement if such registered person provides sufficient evidence lo the satisfaction of the Commissioner-General. which establish the existence of a tenancy agreement in respect of such land and building : |
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| (6) Any input tax attributable to the supply of goods or services received 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, or for the transportation of tourists or transportation of goods or hiring cars, or motor vehicle forming part of any stock in trade of any taxable activity ; | | |
| | (ii) if the supply of goods or services received is not connected with the taxable activity ; | | |
| | (iii) if the supply of goods or services received is not supported by -
| | | (b)a customs goods declaration or other authenticated document issued by the Director-General of Customs ;
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| | (iv) if the input tax on such invoice as mentioned in subparagraph (iii) has not been deducted front output tax for any taxable period ending before the lapse of six months from the last day of the taxable period in which such invoice was received : | | |
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| (7) Where any person have proved to the satisfaction of the Commissioner-General that such person has commenced any business of any project to carry on a business or project in Sri Lanka and undertakes to make taxable supplies in such business within a period of thirty months from such commencement, he may register such person subject to such conditions as may be specified by him notwithstanding the provisions of section 14 and allow credit for input tax in respect of such business or project subject to the provisions of sub paragraph (iii) of subsection (5) further where the commissioner-General is satisfied that in consideration of the nature of the project that the period of thirty months is not sufficient to make taxable supplies he may extend such period on the basis of an application made by such registered person to that effect. |
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| (8) Notwithstanding the provisions of section 33 any refund in excess of the amount due or any excess amount of input tax claimed under this Act or the Goods or Service tax Act No.34 of 1996 shall be assessed by an Assessor to the registered person to whom the refund has been made on making such claim as the case may be and such amount shall be deemed to be a 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 claim in excess as the case may be. |
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Sri Lanka Consolidated Acts