12. Amendment of section 76 of the principal enactment

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

Section 76 of the principal enactment is hereby amended in subsection (1) of that section as follows :—

(1)

in the second proviso to that subsection by the substitution for the words “wholly and exhaustively in making exempt supplies,”of the words “wholly and exclusively in making exempt supplies,”;

(2)

by the substitution for the words “taxable supplies.”

of the following :—

“taxable supplies :

Provided further that where any goods or services that are acquired have been used in making a taxable supply and any input tax has been claimed and allowed, then any portion of such input tax allowed, which is attributable to an exempt supply at the point if any, if such supply subsequently becomes an exempt supply, except in the case of providing leasing facilities for three wheelers, then notwithstanding the provisions of section 22, be disallowed within the taxable period in which such taxable supply becomes an exempt supply.”.

Read on from s 13