Finance Act, 1969
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Amendment of section 6 of Finance (No. 2) Act, 1966. |
59.—(1) Section 6 of the Finance (No. 2) Act, 1966 , is hereby amended by the addition of the following subsections: | |
“(2) Where taxable goods are applied or appropriated by way of hire to a person to whom there has been allotted a registration number under section 4 of this Act and who has, in accordance with section 5 of this Act, given to the person from whom the goods are hired a statement in writing quoting that registration number— | ||
(a) the provisions of subsection (1) of this section shall not apply in relation to the application or appropriation, and | ||
(b) the application or appropriation shall be deemed to be a sale of the goods by wholesale in the course of business and the moneys received in respect of the hire shall be deemed to be moneys received from a person registered under the said section 4 in respect of goods sold to him: | ||
Provided that, if the person to whom the goods are hired, by notice in writing given to the person from whom the goods are hired, withdraws the statement aforesaid, then, on and from the date of the withdrawal, paragraphs (a) and (b) of this subsection shall cease to apply and the provisions of the said subsection (1) shall apply as if the person from whom the goods are hired had on that date applied or appropriated the goods otherwise than— | ||
(i) in the case of a manufacturer—as materials or as stock in trade, or | ||
(ii) in any other case—as stock in trade. | ||
(3) Where a person to whom there has been allotted a registration number under section 4 of this Act— | ||
(a) has, in accordance with section 5 of this Act, given to a person registered under the said section 4 from whom he hires taxable goods a statement in writing quoting that registration number, and | ||
(b) uses those goods otherwise than directly in a production process in the course of making goods, | ||
then, so long as the person to whom the goods are hired does not, by notice in writing given to the person from whom the goods are hired, withdraw the statement aforesaid, the provisions of the said subsection (1) shall apply to him as if— | ||
(i) in accordance with the said section 5 he had purchased the goods in circumstances in which wholesale tax was not chargeable, | ||
(ii) on the occasion of each payment for hire of the goods relating to a period during which he had used the goods otherwise than in a production process in the course of making goods he had applied or appropriated the goods otherwise than— | ||
(I) in the case of a manufacturer—as materials or as stock in trade, or | ||
(II) in any other case—as stock in trade, and | ||
(iii) each such payment for hire was a payment in respect of a sale of goods so applied or appropriated at the wholesale price current at the time of the payment.” | ||
(2) Subsection (1) of this section shall come into operation on the first day of the month immediately following that in which this Act is passed. |