Value-Added Tax Act, 1972

Amount on which tax is chargeable.

10.—(1) The amount on which tax is chargeable by virtue of section 2 (1) (a) shall, subject to this section, be the total consideration which the person delivering goods or rendering services becomes entitled to receive in respect of or in relation to such delivery of goods or rendering of services, including all taxes, commissions, costs and charges whatsoever, but not including value-added tax chargeable in respect of the transaction.

(2) If the consideration referred to in subsection (1) does not consist of or does not consist wholly of an amount of money, the amount on which tax is chargeable shall, subject to subsection (6), be the total amount of money which might reasonably be expected to be charged if the consideration consisted entirely of an amount of money equal to the open market price:

Provided that in computing the total amount on which tax is chargeable as aforesaid a deduction may be made for the open market price of movable goods given in exchange or part exchange for goods of the same kind.

(3) Notwithstanding anything in subsection (1) or (2)—

(a) if for any non-business reason the actual consideration in relation to the delivery of any goods or the rendering of any services is less than that which might reasonably be expected to be received if the consideration were an amount equal to the open market price or there is no consideration, the amount on which tax is chargeable shall be the open market price,

(b) if the consideration actually received exceeds the amount which the person delivering the goods or rendering the services was entitled to receive, the amount on which tax is chargeable shall be the amount actually received, excluding value-added tax chargeable in respect of the transaction, and

(c) if, in a case not coming within paragraph (a), the consideration actually received in relation to the delivery of any goods or the rendering of any services is less than the amount on which tax is chargeable or no consideration is actually received, such relief may be given by repayment or otherwise in respect of the deficiency as may be provided for by regulation.

(4) The amount on which tax is chargeable in relation to deliveries referred to in paragraphs (d) (ii), (e) and (f) of section 3 (1) shall be the cost to the person making the delivery of acquiring or producing the goods excluding the tax which would be deductible under section 12 if the deliveries in question were made in the course of business.

(5) The amount on which tax is chargeable in respect of the rendering of services referred to in section 5 (2) shall be the cost, excluding tax, of providing the services.

(6) Notwithstanding anything in subsection (2), if the consideration for the delivery of any goods or the rendering of any services consists solely of the surrender of stamps, coupons or other tokens, and the goods or services are of a kind which the person to whom the stamps, coupons or other tokens are surrendered does not deliver or render except in relation to the operation of a scheme under which the said surrender is made, the amount on which tax is chargeable shall be the cost, excluding tax, to the person aforesaid of producing or acquiring the goods or rendering the services, as the case may be.

(7) The amount on which tax is chargeable by virtue of section 2 (1) (a) on the delivery of livestock shall be 19.20 per cent. of the total consideration referred to in subsection (1).

(8) On the delivery of immovable goods, other than deliveries to which section 4 (6) relates, and on the rendering of services consisting of the development of immovable goods, including the installation of fixtures, or the maintenance and repair of those goods—

(a) the value of any interest in the goods disposed of in connection with the delivery thereof or the rendering of services as aforesaid, shall be included in the consideration,

(b) if the value of movable goods supplied in pursuance of the agreement for making the delivery aforesaid or rendering any of the services aforesaid does not exceed two-thirds of the total consideration referred to in subsection (1), the amount on which tax is chargeable shall be 60 per cent. of such total consideration, and

(c) (i) if the value of movable goods supplied under the agreement aforesaid exceeds two-thirds of the total consideration, such consideration shall be deemed, for the purposes of this Act, to be referable solely to the delivery of such goods and tax shall be charged at the appropriate rate or rates specified in section 11 on the basis of any apportionment of such total consideration made in accordance with subparagraph (ii), and

(ii) where goods of different kinds are supplied under the agreement referred to in subparagraph (i), the amount of the consideration referable to the delivery of goods of each such kind shall be ascertained in the manner specified in section 5 (5) (b).

(9) (a) The value of any interest in immovable goods shall be the open market price of such interest.

(b) In this section—

“interest”, in relation to immovable goods, and “disposal”, in relation to any such interest, shall be construed in accordance with section 4 (1), and

“the open market price”, in relation to the delivery of any goods or the rendering of any services, means the price, excluding tax, which the goods might reasonably be expected to fetch or which might reasonably be expected to be charged for the services if sold or rendered in the open market at the time of the event in question.