3. fat. Replacement

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Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

Section 47 of the principal enactment is hereby o he repealed and the following section substituted therefor :—

principal

“ Deduction

47.

enactment

Where any registered manufacturer has by registered paid to another registered manufacturer in manufacturer. respect of any transaction entered into dur-ing any quarter, any sum which includes turnover tax in respect of articles used by the first-mentioned registered manufacturer in his business of manufacture cf articles, the turnover tax so included shall be deduct-ed from any turnover tax payable for that quarter by the-first-mentioned registered y manufacturer in respect of the turnover arisirig from the sale of articles manufactur-

ed by the first-mentioned registered manu-a facturer

Provided that—

(a)

no deduction shall be made for turnover tax included in any sum so paid—

(i)

in respect of any plant, machinery, fixtures, vehicle, building, or other capital asset used in that business;

(ii)

for any quarter commencing prior to April 1, 1989, in res-si Be .

pect of any article used in any business of manufacture of excepted articles

;

(iii)

in respect of any article used in any business which is exempt from turnover tax under section 4;

iv), unless the first-mentioned registered manufacturer has obtained from the second-mentioned registered manu-facturer to whom such sum is paid, a voucher as required by subsection (2) of section 46;

(b)

any turnover tax included in any sum so paid by any person prior to his registration as a registered manu-~

facturer, shall be allowed as a deduction from the turnover tax, in respect of the turnover arising from the sale of articles manufactured by him, payable for the quarter in which such registered manufacturer becomes chargeable to turnover tax ;

and

(c)

(i) where the amount of the deduction for any quarter ending on or before March 31, 1989, exceeds the amount of the turnover tax payable, by the first-mentioned registered manufacturer for that quarter in respect of such turn-over, such excess shall not be refunded but shall be deducted, to the extent it can be so deduct-ed from the turnover tax, in respect of such turnover, pay-able by him for the quarter immediately succeeding that quarter and any balance of such excess, from the turnover tax, in respect of such turnover, payable by him for the next succeeding quarter and so on;

and

(ii)

where the amount of the deduc-tion for any quarter commencing on or after April 1, 1989, exceeds the amount of the turnover tax payable by the first-mentioned registered manufacturer for that quarter in respect of such turn-

over, such excess ghall be et deducted, to the extent it can be ea so deducted, from the turnover tax, in respect of such turnover, rn payable by him for the quarter em immediately succeeding that ee

quarter and any balance of such excess, from the turnover tax, in respect of such turnover, pay-able by him for the next succ-eR eeding quarter and so on. Any

residue of such excess which

BR stem aeeanin ont cannot be deducted from the turnover tax, in respect of such beleee turnover, payable by him for eres the fourth quarter reckoned from the quarter in which such excess arose shall, subject to the provisions of section 49, be refunded. ”,

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