Singapore legislation
Clause 20
Clause 20
Amount of input tax allowable
(1)
The amount of input tax for which a taxable person is entitled to credit at the end of any prescribed accounting period shall be determined as follows:
if his business is such that all his supplies are taxable supplies, there is allowable the whole of the input tax for the period (that is input tax on supplies and importations in the period);
if it is such that some but not all of his supplies are taxable supplies, there is allowable such proportion of the input tax for the period as, in accordance with regulations, is attributable to taxable supplies; and
if he has made no taxable supplies in that or any previous period of the business, there is allowable such proportion of the input tax for the period as the Comptroller considers in all the circumstances to be fair and reasonable.
(2)
Regulations may provide for treating all supplies of goods or services by any person as taxable supplies —
where the tax attributable to exempt supplies would be less than such amount, or less than such part of the whole of the input tax, as may be prescribed; or
in other prescribed circumstances.
(3)
The Minister may make regulations for the attribution by the Comptroller of input tax to taxable supplies, and any such regulations may provide for the Comptroller —
to determine a proportion of supplies in any prescribed accounting period which is to be taken as consisting of taxable supplies and provisionally attributing the input tax for that period in accordance with the proportion so determined;
to adjust, in accordance with a proportion determined in like manner for any longer period comprising two or more prescribed accounting periods or parts thereof, the provisional attribution for any of those periods;
to dispense with an adjustment where the amounts allowable for any such longer period in accordance with provisional and adjusted attributions do not differ by more than —
an amount equal to such percentage of the input tax for that period as may be specified in the regulations; or
such an amount as may be so specified,whichever is the greater; and
to prevent input tax on a supply which, under or by virtue of any provision of this Act, a person makes to himself from being allowable as attributable to that supply.
(4)
Without prejudice to the generality of subsection (3), regulations made under that subsection may make different provisions for different circumstances and, in particular, for different descriptions of goods or services; and may contain such incidental and supplementary provisions as appear to the Minister necessary or expedient.