Page 359 - Juta's Indirect Tax

IN 39 (2) VaLue-added tax act: InterPretatIOn nOtes IN 39 (2) Local authority
‘Local authority’ means—
(a) any divisional council, rural council, municipal council, regional services council, town board, local board,
village management board or health committee or any joint services board established under the KwaZulu and
Natal Joint Services Act, 1990 (Act 84 of 1990);
(b) any other body, council, board, committee or institution established or deemed to be established by or under any
law which has functions similar to those of the councils, boards and committees enumerated in paragraph (a) and which may levy rates on the value of immovable property within its area of jurisdiction or receive payments for services rendered or to be rendered; and
(c) any water board or regional water services corporation or any other institution which has powers similar to those of any such boards or corporations:
Provided that where any local authority has been disestablished and superseded by a new local authority in terms of the Local Government: Municipal Structures Act,1998 (Act 117 of 1998), such disestablished local authority and such new local authority shall for the purposes of this Act be deemed to be and to have been one and the same local authority.
Note: The de nition was subsequently deleted and replaced with the de nition of a ‘municipality’ with effect from 1 July 2006.
Public authority
Note: The de nition was amended on 1 April 2005 to be more speci c by including reference to the departments listed in the PSA and certain public entities listed in the PFMA.
Services
Transfer payment
Note: The de nition was deleted on 1 April 2005 together with the zero-rating for transfer payments in terms of section 11 (2) (p).
Section 8 – Certain supplies of goods or services deemed to be made or not made Section 8 (5)
Note: The de nition was amended on 1 April 2005 so that it would only apply to designated entities on or after that date. Section 11 (2) – Zero-rating of services
Section 11 (2) (p)
Note: This provision was deleted on 1 April 2005 together with the de nition of ‘transfer payment’ to which it related. Juta’s IndIrect tax 2016 351
‘Public authority’ means any department or division of the public service (including a provincial administration, the South African National Defence Force, the South African Police Service and Correctional Services).
‘Services’ means anything done or to be done, including the granting, assignment, cession or surrender of any right or the making available of any facility or advantage, but excluding a supply of goods, money or any stamp, form or card contemplated in paragraph (c) of the de nition of ‘goods’.
‘Transfer payment’ means a transfer payment as contemplated in regulation 8.4 of the Treasury Regulations published in terms of the Public Finance Management Act, 1999 (Act 1 of 1999).
(5) For the purposes of this Act a vendor shall be deemed to supply services to any public authority or local authority to the extent of any payment made by the authority concerned to or on behalf of the vendor in respect of the taxable supply of goods or services by the vendor to any person.
(2) Where, but for this section, a supply of services would be charged with tax at the rate referred to in section 7 (1), such supply of services shall, subject to compliance with subsection (3) of this section, be charged with tax at the rate of zero per cent where—
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(p) the services are in terms of section 8 (5) deemed to be supplied to a public authority to the extent that the payment contemplated in that section consists of a transfer payment; or
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