Regulations , 1995

L .N. 101 of 1995

VALUE ADDED TAX ACT,I994

(ACT NO. XII OF 1994)

Value Added Tax (Deductions) (Amendment) (No. 2)

Regulations , 1995

IN exercise of the powers conferred by subsections (2) and (3) of

section 25 and sections 28 and 61 of the Value Added Tax Act, 1994,

hereinafter referred to as .. the Act", the M inisterof Finance has made

the following regulalions:~

I. (I) Theseregu!ationsmaybecitedastheValueAddedTax a...,.,...

(Deductions) (Amendment) (No. 2) Regutations, 1995 and s hall be _ ""'4U .. '''.

read and consttued as one with the Value Added T ax (Deductions) L.N . IOI

Regu lations, 1994 , bereinafter referred to as "the principal regulations". ol1 99<l .

(2) These regulations shall be deemed 10 have come into

force on the 1st January, 1995.

2 . In the Englis h text of paragraph (2) of regulation 12 of the "':nn:do ""'; ,~l_

principal regulations , for the words "be treated these as allowable-

...pl"".

there s hall be substi tuted the words"be treated as al lowable" .

3 . Immediately after regulation 13 of the principal regulations Adds ~

there shall be added the following new regu lation

14. (I) This regulation s hall apply to tax c hargeable

on taxable supplies made 10 a regi stered person and to tax

paid on taxable imponations made by that person [0 the

extent that it is 'attributabl e to supplies made o r to be made

by that person and specified in item 3 o f tHe Fifth Schedule

to the Act

Provided that th is regulation shall not apply to any

tax which is attributable to the provision of accommodation

in a hotel licensed as such under the provisions of the Ho[els

and Catering Establishments Act, or of services to persons

supplied with accommodation in such a hotel consistin g in

amenities prov ided within that hotel.

(2) Notwithstanding the other provisions of these

regulat ions . the amount of lax 10 which this regulation applies

which may be treated as input tax of a registered person for

a tax period shall not ellceed the amount of the outpullall of

that person for that period on the supplies to which that

amount is attributable.

(3) Any amount of tax which is not treated as

input lax of a registered person for a tax period solely by

reason of the limitation provided for in paragraph (2) of this

regulation sha ll be deemed to be the input tax of that person

for the subsequent tax period in addit ion to any other input

tax for that period. provided that

(a) the amount of lax (0 which this regulation

applies Ihlll may be trellted as input tax for the said

subsequent tax period shall again be subject 10 the said

limi tation;

(b)

where an amount of tax is not treated as input

tax for a tax period by reason of the said limitation and

the supplies made by ilia! registered person fora number

o f s ubsequent c onsecu tive tax periods coveri ng at least

twelve months do not include any supplies specified in

item 3 of the Fifth Schedule to the Act, olher than

supplies refem:d to in the proviso to paragraph ( I ) of

this regulation, that amount shall not be treated as input

tax for any subsequent tax period;

nothing in this regulations shall be construed

(c)

as deeming any amounl which has nOI been treated as

in put tax by reason of the said limitation for a tax period

as an excess credil for any lax period":'

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