2. Amendment of section 22 of Act…

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

Section 22 of the Value Added Tax Act, No. 14 of 2002 (hereinafter in this Act referred to as the “principal enactment”) is hereby amended as follows: -

(1)

in subsection (6) of that section, by the repeal of the first proviso to that subsection and the substitution therefor of the following: -

“Provided that, notwithstanding the provisions of subsection (2) and the exemptions specified in-

(a)

item (i) and item (ii) of paragraph (f)

of Part II of the First Schedule to this

Act, for the period prior to the date of commencement of this (Amendment)

Act; or

(b)

item (xxv) and item (xxvi) of paragraph (b) of Part III of the First

Schedule to this Act, for any period on or after the date of commencement of this (Amendment) Act, any registered person who is engaged in supplying of goods or services to any

Strategic Development Project identified under subsection (4) of section 3 of the

Strategic Development Project Act, No. 14 of 2008 or any special project identified by the

Minister under item (ii) of paragraph (f) of

Part II of the First Schedule to this Act or item (xxvi) of paragraph (b) of Part III of the First

Schedule to this Act may be allowed to claim the input tax on the purchase of goods or services connected to supply of goods or services made to such projects.”;

(2)

in subsection (10) of that section, by the repeal of the third proviso to that subsection and the substitution therefor of the following: -

“Provided further, for the purpose of ascertainment of the input tax allowable under this subsection to any person who is supplying goods or services to any Strategic Development Project identified under subsection (4) of section 3 of the Strategic Development Project

Act, No. 14 of 2008 or any special project identified by the Minister under item (ii)

of paragraph (f) of Part II of the First

Schedule to this Act or item (xxvi) of paragraph (b) of Part III of the First

Schedule to this Act-

(a)

for the period prior to the date of commencement of this

(Amendment) Act, specified in item (i) and item (ii) of paragraph (f) of Part II of the First Schedule to this Act; or

(b)

for any period on or after the date of commencement of this

(Amendment) Act, specified in item (xxv) and item (xxvi) of paragraph (b) of Part III of the

First Schedule to this Act, the value of the supply of the suppliers for the relevant period of such project shall be deemed to be a taxable supply on which the output tax is computed.”.

Read on from s 3