Page 33 - Juta's Indirect Tax

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VALUE-ADDED TAX ACT 89 OF 1991 s 8A
paragraph be deemed to form part of such enterprise or part, as the case may be, notwithstanding the provisions of paragraph (v) of the proviso to the de nition of ‘enterprise’ in section 1.
[Sub-s. (25) added by s. 102 (1) (b) of Act 31 of 2005 and substituted by s. 91 (1) (b) of Act 17 of 2009.]
(26) The supply of goods or services under any warranty agreement shall, for the purposes of section 11 (2) (v), be deemed to be a supply of services.
[Sub-s. (26) added by s. 102 (1) (b) of Act 31 of 2005.]
(27) For the purposes of this Act, where any amount received in respect of a taxable supply of goods or services at the rate of 14 per cent exceeds the consideration charged for that supply, and such excess amount has not been refunded within four months of receipt thereof, that excess amount shall be deemed to be consideration for a supply of services performed by the vendor in the course or furtherance of that vendor’s enterprise on the last day of the tax period during which that four month period ends.
[Sub-s. (27) added by s. 79 (b) of Act 20 of 2006 and substituted by s. 27 (1) (b) of Act 36 of 2007.]
8A Sharia compliant nancing arrangements
(1) For the purposes of this Act, in the case of any murabaha as de ned in section 24JA (1) of the Income Tax Act—
Pendlex
[NB: Sub-s. (23) has been deleted by s. 129 (1) of Taxation Laws Amendment Act, 2015, a provision that will come into operation on 1 April 2017.]
(24) For the purposes of this Act, a vendor, being a customs controlled area enterprise or an IDZ operator, shall be deemed to supply goods in the course or furtherance of an enterprise where movable goods are temporarily removed from a place in a customs controlled area to a place outside the customs controlled area, situated in the Republic, if those goods are not returned to the customs controlled area within 30 days of its removal, or within a period approved in writing by the Controller: Provided that this subsection shall not apply where these movable goods are supplied by the customs controlled area enterprise or IDZ operator, prior to the expiry of the relevant prescribed time period:
Provided further that this subsection shall not apply to— (a) goods that are deemed to have been imported under
paragraph (i) of the proviso to section 13 (1); or
[NB: The words preceding the further proviso and para. (a) have been substituted by s. 21 (1) (a) and (b) respectively of Act 44 of 2014, provisions that will come into operation on the date on which the Customs Control Act 31 of 2014 takes effect. See Pendlex below.]
Pendlex (to come into operation on the date on which the Customs Control Act 31 of 2014 takes effect)
(3) For the purposes of this Act, a vendor, being an SEZ enterprise or an IDZ operator in a customs controlled area, shall be deemed to supply goods in the course or furtherance of an enterprise where movable goods are temporarily removed from a place in a customs controlled area to a place outside the customs controlled area, situated in the Republic, if those goods are not returned to the customs controlled area within 30 days of its removal, or within a period approved in writing by the customs authority: Provided that this subsection shall not apply where those movable goods are supplied by the SEZ enterprise or IDZ operator, prior to the expiry of the relevant prescribed time period: Provided further that this subsection shall not apply to—
(a) goods that are cleared for home use in terms of the
Customs Control Act; or
(b)
goods to which section 18 (10) previously applied.
[Para. (c) substituted by s. 132 (1) of Act 24 of 2011.] (2) For the purposes of this Act, in the case of any diminishing musharaka as de ned in section 24JA (1) of
the Income Tax Act—
(a) the bank shall be deemed not to have acquired or
supplied goods under the sharia arrangement;
(b) (i) where the bank and the client jointly acquire goods, the client shall be deemed to have
acquired the bank’s interest in the goods—
(aa) for an amount equal to the amount payable by the bank in respect of its interest in the
goods; and
(bb) at the time that the seller of the goods was
divested of any interest in the goods by virtue of the transaction between the seller and the bank; or
(ii) where the bank acquires an interest in the goods from the client, the client shall be deemed not to have supplied an interest in the goods to the bank; and
(c) any amount contemplated in section 24JA (5) (d) of the Income Tax Act paid or payable to the bank by the client shall be deemed to be consideration in respect of an exempt nancial service supplied by the bank as contemplated in section 2 (1) (f): Provided that
[Sub-s. (24) added by s. 102 (1) (b) of Act 31 of 2005, substituted by s. 79 (a) of Act 20 of 2006 and amended by s. 106 (1) (d) of Act 60 of 2008 and by s. 146 (1) (c) of Act 22 of 2012 by the addition of a further proviso – date of commencement: 1 January 2013. This amended subsection applies in respect of goods supplied on or after that date.]
(25) For the purposes of this Act, where any goods or services are supplied by a vendor to another vendor, those vendors must for the purposes of that supply or subsequent supplies of those goods or services, be deemed to be one and the same person provided the provisions of section 42, 44, 45 or 47 of the Income Tax Act are complied with: Provided that this subsection shall not apply to a supply contemplated in section 42 or 45 of the Income Tax Act, unless—
(i) that supply is of an enterprise or part of an enterprise which is capable of separate operation, where the supplier and recipient have agreed in writing that such enterprise or part, as the case may be, is disposed of as a going concern; or
(ii) the enterprise or part, as the case may be, disposed of as a going concern has been carried on in, on or in relation to goods or services applied mainly for purposes of such enterprise or part, as the case may be, and partly for other purposes, such goods or services shall, where disposed of to such recipient, for the purposes of this
(a) (b)
(c)
the nancier shall be deemed not to have acquired or
supplied goods under the sharia arrangement;
[Para. (a) substituted by s. 132 (1) of Act 24 of 2011.] the client shall be deemed to have acquired the goods— (i) from the seller for consideration equal to the
amount paid by the nancier to the seller; and (ii) at such time as the supply was made by the seller by virtue of the transaction between the seller
and the nancier; and
[Para. (b) substituted by s. 132 (1) of Act 24 of 2011.] any premium paid or payable to the nancier by the client shall be deemed to be consideration in respect of a nancial service supplied by the nancier as contemplated in section 2 (1) (f): Provided that this paragraph shall not apply to the extent to which the consideration constitutes any fee, commission or similar charge.
Juta’s IndIrect tax 2016
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