Sri Lanka Consolidated Acts Sri Lanka Consolidated ActsBad Debt
| 24. In ascertaining the amount of tax payable in any taxable period, there shall be deducted an amount of tax corresponding to any bad debt incurred in the taxable activity of a registered person on a debt created on or after April 1, 1998 and which has become bad during such taxable period. The amount of tax deductable shall not exceed the amount paid as tax in a previous taxable period in respect of the bad debt which is to be written off:Provided that any amount written off as bad debt before or after the commencement of this Act is received in any taxable period by that person on account of the bad debt so written off notwithstanding the provisions of section 33, the amount received shall be treated as a taxable supply during the taxable period under this Act of the Goods and Services Tax Act No 11 of 1996 in which it was received and shall be liable to Tax: Provided further that where any amount of tax corresponding to a bad debt has been deducted by any person, the amount so deducted shall be an output tax for the corresponding period of the person in respect of whom the bad debt was incurred if he is a registered person. |