7. Amendment of section 22 of the principal enactment

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

Section 22 of the principal enactment is hereby amended as follows :—

(1)

in the proviso to subsection (1) of that section, by the substitution for the words and figures “Law No.

4 of 1978”, of the words and figures “Law No. 4 of 1978 or by any other garment manufacturer who manufactures garments for export under the supervision of the Department of Customs”;

(2)

by the insertion immediately after the proviso to subsection (1) of that section of the following :—

“Provided further that no other tax or levy including any duty under the Customs Ordinance shall be charged or collected on such sale of garments, where the amount specified in the preceding proviso has been paid on such sale.”;

(3)

in subsection (5) of that section —

(a)

in paragraph (b) of the first proviso to that subsection, by the substitution for the word and figure “subsection (6)”, of the word and figure “subsection (7)”;

(b)

in the second proviso to that subsection, by the substitution for the words “shall not be refunded.”, of the words and figures“shall not be refunded but such input tax including any excess input tax as at July 31, 2002, under the

Goods and Services Tax Act, No. 34 of 1996

shall be carried forward.”;

(4)

in subsection (6) of that section —

(a)

by the repeal of paragraphs (iii) and (iv) of that subsection and the substitution therefore of the following :—

“(iii)

if the supply of goods or services received is not supported by —

(a)

a valid tax invoice ; or

(b)

a customs goods declaration or other authenticated document issued by the Director-General of

Customs under this Act or under the Goods and Services Tax Act,

No. 34 of 1996, and received within twelve months from the end of the relevant taxable period in respect of which such tax invoice was issued or from the date of importation of goods, as the case may be;

(iv)

if the input tax on such tax invoice or customs goods declaration, as the case may be, has not been deducted from the output tax for any taxable period ending before the lapse of six months from the last day of the taxable period in which such tax invoice or customs goods declaration was received :”;

(b)

by the insertion immediately after the first proviso to subsection (6) of that section of the following proviso :—

“Provided further, where input tax disallowed in respect of any motor vehicle referred to in paragraph (i) may be allowed up to a limit of fifty percent of such input tax for any taxable period commencing on or after

January 1, 2003, subject to the provisions of subsection (3), where such vehicle is partly or wholly used in any taxable activity.”;

(5)

in subsection (7) of that section, by the substitution for the word and figure “subsection (5)”, of the word and figure “subsection (6)”;

(6)

in paragraph (b) of subsection (8) of that section, by the substitution for the word and figure

“subsection (6)”, of the words and figures

“subsection (7) or subsection (6) of section 22 of the Goods and Services Tax Act, No. 34 of 1996.”.

Read on from s 8