|
|
Amendment of section 12 of Principal Act.
|
10.—Section 12 of the Principal Act is hereby amended by the substitution of the following subsections for subsections (1) and (3):
|
|
| |
“(1) In computing the amount of tax payable by a taxable person in respect of a taxable period there may be deducted—
|
|
| |
(a) the tax charged to him during the period by other taxable persons by means of invoices, prepared in the manner prescribed by regulations, in respect of supplies of goods or services to him,
|
|
| |
(b) the tax paid by him during the period, or payable by him in relation to the period, in respect of goods imported by him,
|
|
| |
(c) the tax chargeable during the period in respect of goods applied for the purposes of his business and treated as supplied in accordance with section 3 (1) (e),
|
|
| |
(d) the tax chargeable during the period in respect of services carried out by him for the purposes of his business and treated as supplied by him for consideration in the course or furtherance of his business in accordance with section 5 (3) (d),
|
|
| |
(e) the tax chargeable during the period, being tax for which he is liable by virtue of section 8 (2), in respect of services received by him, and
|
|
| |
(f) tax charged to him during the period by means of invoices prepared in the manner prescribed by regulations and issued to him in accordance with section 12A.
|
|
| |
(3) (a) Notwithstanding anything in subsection (1), a deduction of tax under that subsection shall not be made if, and to the extent that, the tax relates to—
|
|
| |
(i) the provision of food or drink, or accommodation or other personal services, for the taxable person, his agents or his employees, except to the extent, if any, that such provision constitutes a supply of services in respect of which he is accountable for tax,
|
|
| |
(ii) entertainment expenses incurred by the taxable person, his agents or his employees,
|
|
| |
(iii) the acquisition (including hiring) of motor vehicles otherwise than as stock-in-trade or for the purposes of a business which consists in whole or part of the hiring of motor vehicles or for use, in a driving school business, for giving driving instruction,
|
|
| |
(iv) the purchase of petrol otherwise than as stock-in-trade, or
|
|
| |
(v) goods or services used by the taxable person for the purposes of an exempted activity (whether carried on in the State or elsewhere) or for purposes other than those of his business.
|
|
| |
but subparagraph (v) shall not operate to prevent a deduction of tax if, and to the extent that, the tax relates to goods and services used for the purposes of any of the following activities:
|
|
| |
(I) transport outside the State of passengers and their accompanying baggage,
|
|
| |
(II) services specified in paragraph (i), (xi) or (xii) of the First Schedule, and agency services in regard thereto, supplied outside the Community, and
|
|
| |
(III) insurance services and the provision of credit, and agency services in regard thereto, directly in connection with the export of goods to a place outside the Community.
|
|
| |
(b) In paragraph (a) of this subsection ‘motor vehicles’ means motor vehicles designed and constructed for the conveyance of persons by road and sports motor vehicles, estate cars, station wagons, motor cycles, motor scooters, mopeds and auto cycles, whether or not designed and constructed for the purpose aforesaid, excluding vehicles designed and constructed for the carriage of more than 16 persons (inclusive of the driver), invalid carriages and other vehicles of a type designed for use by invalids or infirm persons.”.
|
