Value-Added Tax Act, 1972
|
Special provisions for adjustment and recovery of consideration. |
35.—(1) (a) Notwithstanding the repeal by this Act of the provisions relating to turnover tax and wholesale tax, sums due on account of turnover tax or wholesale tax under a contract entered into before the specified day, together with any additional sums which might be recoverable by virtue of the provisions of section 9 of the Finance (No. 2) Act, 1966 , section 7 of the Finance (No. 2) Act, 1968 , section 58 of the Finance Act, 1969 , section 51 of the Finance Act, 1970 , or section 4 of the Finance (No. 2) Act, 1970 , shall, in the absence of agreement to the contrary, but subject to subsection (2), be recoverable as if the said provisions relating to turnover tax and wholesale tax had not been repealed. | |
(b) (i) Subject to subparagraph (ii), where, under an agreement made before the specified day, an accountable person delivers goods or renders services on or after that day in such circumstances that tax is chargeable, the consideration provided for under the agreement shall, in the absence of any agreement to the contrary, be adjusted by excluding therefrom the amount, if any, included on account of turnover tax or wholesale tax or both of those taxes, as the case may be, and including therein an amount equal to the amount of the tax so chargeable, and the consideration as so adjusted shall be deemed to be the consideration provided for under the agreement. | ||
(ii) The consideration provided for under an agreement for the delivery of immovable goods or the rendering of a service consisting of a development made before the specified day shall, in the absence of agreement to the contrary, be deemed, for the purposes of this paragraph, to include an amount of turnover tax and wholesale tax combined equal to the amount of tax chargeable in respect of the transaction. | ||
(c) Where, under an agreement made before the specified day, a person, other than an accountable person, delivers goods or renders services on or after that day to another person (in this paragraph referred to as the buyer) in such circumstances that the buyer is, or would, if he were an accountable person, be entitled under section 13 to treat as tax deductible under section 12 such amount of the consideration for such delivery or rendering as is specified in subsection (1) of the said section 13, the consideration provided for under the agreement shall, in the absence of agreement to the contrary, be increased by that amount. | ||
(2) Where, in relation to a delivery of goods or a rendering of services by an accountable person, the person issues an invoice in which the tax chargeable in respect of the transaction is stated separately, the tax so stated shall, for the purpose of its recovery, be deemed to be part of the consideration for the transaction and shall be recoverable accordingly by the person: | ||
Provided that, if the invoice is issued pursuant to section 17 (1), this subsection shall not apply unless it is in the form and contains the particulars specified by regulations. |