108. Application of increased or reduced rate
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(1) Where —
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(a) services are performed; or
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(b) goods are provided in respect of a successive supply contemplated in section 18(8) or (9),
during a period beginning before and ending on or after the date on which a change in the rate of tax levied under section 9(1)(a) or (c) becomes effective in respect of the supply of the goods or services, or the date on which the tax is imposed or withdrawn in respect of the supply, and the supply is deemed under section 18 to have been made on or after the said date, the value of the supply is, on the basis of a fair and reasonable apportionment, deemed to consist of a part, relating to the performance of services or provision of goods before the said date and a part, relating to the performance of services or provision of goods on or after the said date.
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(2) For the purposes of subsection (1), in the case of —
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(a) a change in the rate on the said date, the tax payable in respect of the first part is to be determined at the rate applicable before the said date and the tax payable in respect of the second part is determined at the rate applicable on the said date;
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(b) the imposition of tax on the said date, the first part is not to be subject to tax; or
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(c) the withdrawal of the tax, the first part is to be subject to tax as if the tax had not been withdrawn.
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(3) For the purposes of subsection (1), goods are deemed to be provided by the supplier of the goods when the goods are delivered to the recipient and goods supplied under a rental agreement are deemed to be provided to the recipient when the recipient takes possession or occupation of the goods.
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(4) In this section —
“first part” means the part relating to the performance of services or provision of goods before the said date;
“second part” means the part relating to the performance of services or provision of goods on or after the said date.