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Sec. 12 VALUE-ADDED TAX ACT, 1972
Deduction for tax borne or paid.
Deduction for tax borne or paid.
Deduction for tax borne or paid.
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12.—(1) In computing the amount of tax payable by an accountable person in respect of any taxable period there may be deducted—
(a) the tax charged to him during such period by other accountable persons by means of invoices, prepared in the manner prescribed by regulations, in respect of deliveries of goods made or services rendered to him,
(b) the tax charged to him during such period by means of invoices, prepared in the manner prescribed by regulations and issued by persons authorised in accordance with section 13 to issue such invoices, in respect of deliveries of goods made or services rendered to him,
(c) the tax paid by him during such period in respect of goods imported by him,
(d) the tax chargeable during such period in respect of goods used for the purposes of his business and treated as delivered in accordance with section 3 (1) (e), and
(e) the tax chargeable during such period in respect of services rendered by him for the purposes of his own business and deemed under section 5 (2), for the purposes of this Act, to be rendered in the course of business
Provided that, in relation to the delivery or importation of any goods of a kind specified in the Fourth Schedule, the amount deductible under this section by a person, other than a manufacturer of goods of the kind so delivered or imported, shall not exceed a sum representing, in the case of delivery of such goods to him, 526 per cent. of the consideration payable by him, exclusive of the tax payable in respect of the delivery by the person making the delivery or, in the case of an importation, 526 per cent. of the value of the goods calculated in accordance with section 15 (4).
(2) If, in relation to any taxable period, the total amount deductible under this section exceeds the amount which, but for this section, would be payable in respect of such period, the excess shall be repaid to the accountable person.
(3) Notwithstanding anything in subsection (1), a deduction of tax shall not be made if, and to the extent that, such tax relates to—
(a) the provision of food, drink, accommodation or other personal services for the accountable person, his agents or employees,
(b) entertainment expenses incurred by the accountable person, his agents or employees,
(c) the acquisition (including hiring) of motor vehicles of a kind specified in the Fourth Schedule otherwise than as stock-in-trade (within the meaning of section 34) or for the purposes of a business which consists in whole or part of the hiring of such vehicles,
(d) the purchase of petrol otherwise than as stock-in-trade (within the meaning of the said section 34),
(e) any activity of the accountable person which is either an exempted activity or is outside the scope of his business.
(4) Any necessary apportionment between tax which may be deducted in accordance with this section and tax which may not be deducted shall be made in accordance with regulations.