Value-Added Tax (Amendment) Act, 1978

Amendment of section 35 of Principal Act.

22.—Section 35 of the Principal Act is hereby amended by the addition to the section of the following subsection:

“(3) (a) Where, under an agreement made before the commencement of section 12A, a flat-rate farmer supplies agricultural produce or an agricultural service after such commencement to any person, the consideration provided for under the agreement shall, in the absence of agreement to the contrary, be increased by an amount equal to the flat-rate addition appropriate to the said consideration.

(b) Where, in relation to a supply of agricultural produce or an agricultural service by a flat-rate farmer, the flat-rate farmer issues an invoice in which the flat-rate addition is stated separately, the flat-rate addition so stated shall, for the purpose of its recovery, be deemed to be part of the consideration for the transaction and shall be recoverable accordingly by the flat-rate farmer.”.