9of2011.pdf
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PARLIAMENT OF THE DEMOCRATIC
SOCIALIST REPUBLIC OF
SRI LANKA
VALUE ADDED TAX (AMENDMENT)
ACT, NO. 9 OF 2011
[Certified on 31st March, 2011]
Printed on the Order of Government
Published as a Supplement to Part II of the Gazette of the Democratic
Socialist Republic of Sri Lanka of April 01, 2011
PRINTEDAT THEDEPARTMENT OFGOVERNMENTPRINTING,SRILANKA
TO BEPURCHASED AT THEGOVERNMENT PUBLICATIONSBUREAU, COLOMBO 5
Price : Rs. 18.00 Postage : Rs. 20.00
Value Added Tax (Amendment) 1
Act, No. 9 of 2011
[Certified on 31st March, 2011]
L.D.— O. 16/2011.
AN ACT TO AMEND THE VALUE ADDED TAX ACT, NO. 14 OF 2002
BE it enacted by the Parliament of the Democratic Socialist
Republic of Sri Lanka as follows :-
1. This Act may be cited as the Value Added Tax Short title and
(Amendment) Act, No. 9 of 2011 and shall be deemed to date of
operation.
have come into operation on January 1, 2011 unless different
dates of operation are specified in the relevant sections.
2. Section 2 of the Value Added Tax Act, No. 14 of 2002 Amendment of
(hereinafter referred to as the "principal enactment") is hereby section 2 of the
Value Added Tax
amended as follows :-
Act, No.14 of
2002.
(1) in subsection (1) of that section-
(a) by the repeal of sub-paragraph (iv) (b) thereof
and the substitution therefor of the following :-
"(b) (i) for the period commencing on August 2,
2005 and ending on September 30, 2005,
at the rate of twenty percentum (Luxury
Rate) of which the tax fraction is 1/6;
(ii) for any taxable period commencing on or
after October 1, 2005 and ending on
November 23, 2010, in respect of goods
at the rate of twenty percentum (Luxury
Rate) of which the tax fraction is 1/6;
(iii) for any taxable period commencing on
or after October 1, 2005 and ending on
December 31, 2010, in respect of services
at the rate of twenty percentum (Luxury
Rate) which the tax fraction is 1/6;
2 Value Added Tax (Amendment)
Act, No. 9 of 2011
on the value of such goods or services supplied
as referred to in the Fourth Schedule, other
than such goods chargeable with the tax at zero
percentum;
(b) in sub-paragraph (v) of that subsection-
(i) in item (ii) thereof, by the substitution for
the words and figures "commencing on or
after January 1, 2009" of the words and
figures "commencing on or after January
1, 2009 and ending on December 31,
2010"; and
(ii) by the addition, immediately after item (ii)
thereof, the following new item :-
"(iii) for the period commencing on
November 23, 2010 and ending on
December 31, 2010, and for any
taxable period commencing on or after
January 1, 2011, at the rate of twelve
per centum (of which the tax fraction
is 3/28) on the value of such goods or
services supplied, or goods imported,
other than goods or services chargeable
with tax at Zero percentum.".
(2) in subsection (2) of that section-
(a) in sub-paragraph (iv) of paragraph (c) thereof,
by the substitution for all the words from "until
such time as the activities" to the end of that
sub-paragraph of the following :-
"until such time as the activities of such
garment manufacture or service provider are
carried out in the manner stipulated by the
Commissioner-General in the guidelines
issued for this purpose, on the submission of
the reconciliation relating to –
(a) the disposal of such goods, stating that
such finished goods have in fact been
Value Added Tax (Amendment) 3
Act, No. 9 of 2011
exported by the recipient of the
supplies; or
(b) the supply of value added services,
stating that such services have in fact
been used for the manufacture of
garments which have been exported:
Provided that, with effect from April 1,
2011, deferment of tax under this paragraph
shall be administrated by the Commissioner-
General.";
(b) in sub-paragraph (d) thereof, by the
substitution for all the words from "until such
time as the activities" to the end of that sub-
paragraph, of the following :-
"until such time as the activities of such
manufacture of goods or service provider
are carried out in the manner stipulated by the
Commissioner-General of Inland Revenue in
the guidelines issued for this purpose, on the
submission of the reconciliation relating to –
(a) the disposal of such goods, stating that
such finished goods have in fact been
exported by the recipient of the
supplies; or
(b) the supply of value added services,
stating that such services have in fact
been used for the manufacture of
goods which have been exported:
Provided that, with effect from April 1,
2011, deferment of tax under this paragraph
shall be administrated by the Commissioner-
General.";
4 Value Added Tax (Amendment)
Act, No. 9 of 2011
(c) by the addition immediately after sub-paragraph
(d) thereof the following new paragraph :-
"(e) on the supply of goods or services other
than the goods or services referred to in
sub-paragraphs (c) or (d), the Commissioner
– General may after affording the applicant
who is a registered person, an opportunity
of being heard, and having regard to the
nature of the business carried on or carried
out by such applicant, defer the payment
of tax, subject to the conditions stipulated
by the Commissioner – General in the
guidelines issued for this purpose, in respect
of supplies made to :-
(i) a registered person engaged in any
specific project referred to in sub
paragraph (ii) of paragraph (f) of
PART II of the First Schedule;
(ii) an exporter or to a manufacturer who
supplies goods manufactured in Sri
Lanka to an exporter;
(iii) any supplier who provides value
added services to an exporter which
results in the improvement of the
quality, character or value of any
goods manufactured for export;
(iv) any person registered under the
provisions of subsection (7) of
section 22 of the Act, during the
project implementation period so far
as such supplies are project related
supplies
until such time as the activities of such
suppliers of goods or providers of service
are carried out as stipulated by the
Commissioner-General in the guidelines
Value Added Tax (Amendment) 5
Act, No. 9 of 2011
issued by him for this purpose, and on the
submission of the reconciliation relating
thereto, stating that such goods or services
are in fact made to a registered person
referred to in this sub-paragraph and such
goods or services are utilized for the
purposes of such specified activities.".
3. Section 16 of the principal enactment is hereby Amendment of
amended by the addition immediately after subsection (2) section 16 of the
principal
thereof, the following new subsection :-
enactment.
"(2A) Where the Commissioner-General
cancels any registration under subsection (2), he
shall cause a list of names and the registration
numbers of such registered persons to be published
in three daily newspapers in the Sinhala, Tamil
and English languages, having a wide
circulation.".
4. Section 20 of the principal enactment is hereby Amendment of
amended in paragraph (b) of subsection (6) of that section section 20 of the
principal
by the substitution for words and figures "under paragraphs
enactment.
(a) or (c) of subsection (2) of section 2," of the words and
figures "under paragraphs (a), (c), (d) or (e) of subsection (2)
of section 2,".
5. Section 22 of the principal enactment is hereby amended Amendment of
as follows:- section 22 of
the principal
enactment.
(1) in paragraph (e) of the proviso to subsection (5) of
that section –
(a) in sub-paragraph (b) thereof, by the
substitution for the words and figures "'if the
excess is in respect of the taxable period
commencing on or after January 1, 2006" of
the words and figures "if the excess is in
respect of the taxable period commencing on
or after January 1, 2006 and ending on March
31, 2011",
6 Value Added Tax (Amendment)
Act, No. 9 of 2011
(b) by the addition immediately after sub-
paragraph (b), of the following new sub-
paragraph :-
"(c) if the excess is in respect of any taxable
period commencing on or after April 1,
2011, such excess shall be refunded no later
than forty-five days after the end of that
taxable period or from the date of receipt
of the return for the relevant taxable period
whichever is later.";
(2) in subsection (6) of that section, by the substitution
in the proviso to paragraph (iv) thereof, for the
words "to supply of goods or services to such
projects." of the words "to supply of goods or
services to such projects :
Provided further, notwithstanding the
provisions of subsection (2), the tax paid by the
employer as a registered person, on the payments
borne by him on the outsourcing of the supply of
meals and transport, in respect of a benefit referred
to in the exemption specified in item (iv) of
paragraph (b) of Part II of the First Schedule, may be
allowed as the input credit of a registered person.";
(3) in subsection (10) of that section, by the
substitution for the words and figures from "The
amount of input tax allowable under the preceding
provisions of this section" to "subject however to
the same restriction:" of the following:-
"The amount of any input tax allowable for any
taxable period, shall be subject to the following
further restrictions :-
(a) for any taxable period commencing on or after
January 1, 2007 but prior to Decmber 31, 2010,
including in the case of a registered person who
imports goods for re-sale without processing
referred to in the third proviso to subsection (5)
Value Added Tax (Amendment) 7
Act, No. 9 of 2011
of this section, the excess input tax as at
December 31, 2006 to the lesser amount of
eighty-five percentum of the output tax declared
for that taxable period or the input tax
allowable under the provisons of this Act. The
residue, if any, shall be deemed to be a part of
the input tax allowable in the subsequent
taxable period or periods, subject however to
the same restriction up to the taxable period
ended as at December 31, 2010. The unabsorbed
residue, if any, as at December 31, 2010 shall
be carried forward and may be claimed by a
registered person for any taxable period not
exceeding a sum equivalent to ten percentum
of the unabsorbed amount for each month,
provided that such sum does not exceed five
percentum of the net tax payable after
deducting allowable input credit from the
output tax by such person;
(b) for any taxable period commencing on or after
January 1, 2011, excluding the input tax
referred to in sub-paragraph (a) above claimed
up to December 31, 2010, to the lesser amount
of hundred percentum of the output tax declared
for that taxable period or the input tax
allowable under the provisions of this Act. The
residue, if any, shall be deemed to be a part of
the input tax allowable in the subsequent
taxable period or periods, subject however to
the same restriction:
Provided that, in the case of a registered
person who has at December 31, 2010, an
unabsorbed input credit, but from and after
January 1, 2011, such person has no taxable
supplies liable to tax under the provisions of
this Act, then, the unabsorbed input credit
referred to in paragraph (a) may be set off after
ascertaining the amount of the unabsorbed
8 Value Added Tax (Amendment)
Act, No. 9 of 2011
input credit, in the manner provided for in either
paragraph (i), paragraph (ii) or paragraph (iii)
as the case may be :-
(i) Where the registered person is an operator
of a telecommunication services licensed
under section 17 of the Sri Lanka
Telecommunication Act, No. 25 of 1991,
the set off shall be made as against the sum
payable by him as Telecommunication Levy
payable under the Telecommunication
Levy Act, No. 21 of 2011 ;
(ii) in the case of a registered person who is
liable to pay income tax, the set off shall
be made as against the sum payable by such
person as income tax after January 1, 2011;
(iii) in a case of a person to whom the provisions
of either paragraph (i) or (ii) above does
not apply, the set off shall be made against
the sum payable after January 1, 2011, by
such person as tax under any written law
for the time being in force, administrated
by the Commissioner – General.
The set off for each month in terms of
this proviso, shall not exceed ten per
centum of the unabsorbed input credit as
at December 31, 2011 or five percentum of
the relevant tax imposed referred to in
items (i), (ii) or (iii) above for that particular
month, whichever is less.".
Replacement of 6. Section 25B of the principal enactment is hereby
section 25B of repealed and the following section substituted therefor :-
the principal
enactment. "Taxable 25B. (1) The taxable period of every
period. registered specified institution or other
person shall be :-
(a) one month for any taxable period
prior to January 1, 2011; and
Value Added Tax (Amendment) 9
Act, No. 9 of 2011
(b) six months for any taxable period
commencing on or after January
1, 2011.
(2) Every registered specified
institution or other person shall furnish a
return in the Form specified, in respect of
each taxable period before the end of the
following month of the taxable period.
(3) (a) Notwithstanding the provisions
of subsection (1) of section 26, tax payable
for any taxable period by every registered
specified institution or other person shall
be paid on a monthly basis on or before the
twentieth day of the succeeding month
subject to the making of the final
adjustment, if any, with the submission of
the return as specified in this section.
(b) Any tax which is not so paid as set
out in paragraph (a) shall be deemed to be
in default and any registered specified
institution or other person to whom this
subsection applies shall be deemed to be a
defaulter within the meaning of this Act.”.
7. Section 25C of the principal enactment is hereby Amendment of
amended as follows :- section 25C of
the principal
(1) in subsection (1) of that section, by the substitution enactment.
for all the words from "for avoidance of doubts it is
here by declared" to the words "the tax payable
under this Chapter" of the following :-
"for the purpose of this Chapter the value addition
of such specified institution shall be computed :-
(i) for any taxable period commencing prior to
January 1, 2011, based on the net profit or loss
prior to the deduction of the tax payable under
this Chapter; and
(ii) for any taxable period commencing on or after
Januray 1, 2011, based on the net profit or loss
after the deduction of the tax payable under
this Chapter.";
10 Value Added Tax (Amendment)
Act, No. 9 of 2011
(2) by the repeal of subsection (3) of that section and
the substitution therefor of the following :-
"(3) The amount of tax payable for any
taxable period :-
(a) commencing from January 1, 2003 but prior
to January 1, 2004 shall be ten percentum;
(b) commencing from January 1, 2004, but prior
to January 1, 2005, shall be fifteen percentum;
(c) commencing from January 1, 2005, but prior
to January 1, 2011, shall be twenty
percentum; and
(d) commencing from January 1, 2011 shall be
twelve percentum;
of the value addition specified in subsection (i)";
(3) by the repeal of subsection (8) of that section and
the substitution therefor of the following :-
"(8) for the purpose of calculation of tax under
this section, every specified institution or any other
person shall follow the guidelines specified by the
Commissioner-General having considered the
uniform application of the calculation of such tax.";
(4) by the addition immediately after subsection (8)
of that section, of the following new subsection :-
"(9) eight percentum of the value addition
specified in subsection (1) of section 25C shall be
invested in the fund established in the Central
Bank of Sri Lanka as specified in the guidelines
issued for this purposes with the concurrence of
the Commissioner – General for the period of three
Value Added Tax (Amendment) 11
Act, No. 9 of 2011
years commencing from January 1, 2011 and the
investment shall be made on a monthly basis on or
before the twentieth day of the subsequent month.".
8. Section 25H of the principal enactment is hereby Amendment of
amended in subsection (1) of that section, by the substitution section 25H of
the principal
for the words and figures "of this Chapter for every quarter enactment.
commencing on or after January 1, 2007, at the rate of five
per centum" of the following :-
"of this Chapter :-
(a) for every quarter commencing on January 1, 2007
and ending on December 31, 2010, and for every
quarter commencing from the quarter in which
the registration falls due, at the rate of five
percentum; and
(b) every quarter commencing on January 1, 2011,
in the following manner :-
(i) at the rate of two percentum, for every quarter
falling within the three years commencing
from the beginning of the quarter in which
registration falls due, but after the December
31, 2010;
(ii) at the rate of four percentum, for every quarter
falling within the three years commencing
immediately after the end of the three years
referred to in item (i);
(iii) at the rate of eight percentum, for every
quarter falling within the three years
commencing immediately after the end of
three years referred to in item (ii); and
(iv) at the rate of twelve per centum, for every
quarter falling within the three years
commencing immediately after the end of
three years referred to in item (iii);".
12 Value Added Tax (Amendment)
Act, No. 9 of 2011
Amendment of 9. Section 25I of the principal enactment is hereby
section 25I of amended in subsection (1) thereof, by the substitution for
the principal
enactment. paragraph (b) thereof, of the following :-
"(b) such registration shall be valid for a period of twelve
years from the date of commencement of the quarter
in which the registration is obtained by such person
or partnership.".
Insertion of new 10. The following new section is hereby inserted
section 25j in immediately after section 25I and shall have effect as section
the principal
25J of that enactment :—
enactment.
“The value 25J. (1) The values of supplies from any
of supplies Islamic Financial Transaction shall be
from any
chargeable to tax in terms of the provisions of
Islamic
Financial this Act.
Transactions
to be (2) The Commissioner-General of Inland
chargeable to
Revenue shall in order to determine the extent
tax.
of liability to tax of any particular Islamic
Financial Transaction, issue, from time to time,
such rules and guidelines as may be required
for the purpose of—
(a) identifying the circumstances which
would amount to an Islamic Financial
Transaction ; and
(b) ascertaining the value of supplies arising
out of any Islamic Financial
Transaction.”.
Amendment of 11. Section 26A of the principal enactment is hereby
section 26A of amended in subsection (1) thereof, by the substitution for the
the principal
words "Every Government Agency which makes payments
enactment.
in pursuance of a contract" of the words and figures "Every
Government Agency which makes payments prior to January
1, 2011, in pursuance of a contract.".
Value Added Tax (Amendment) 13
Act, No. 9 of 2011
12. Section 33 of the principal enactment is hereby Amendment of
amended in subsection (2) thereof by the substitution for the section 33 of the
principal
words "within a period of five years from the end of the taxable enactment.
period to which the assessments relates." of the words "at any
time".
13. Sections 34 to 36 (both inclusive) appearing under Amendment of
the Heading "Chapter VI – appeals" of the principal enactment section 34 to 36
of the principal
are hereby amended by the substitution for the words "Board
enactment.
of Review constituted under the Inland Revenue Act, No. 10
of 2006" and "Board of Review" respectively wherever such
words appear in that Chapter, of the words "Board of Review
or any Commission which may be constituted by any written
law for the purpose of hearing appeals in terms of this Act."
14. Section 43 of the principal enactment is hereby Amendment of
amended in the proviso to subsection (1) thereof, by the section 43 of the
principal
substitution for the words "examine or decide the correctness
enactment.
of any statement in the statement of certificate of the
Commissioner-General." of the words "examine or decide
the correctness of any statement in the certificate of the
Commissioner-General or to postpone or defer such
proceeding for a period exceeding thirty days, by reason
only of the fact that an appeal is pending against the
assessment in respect of which the tax in default is charged.".
15. Section 55 of the principal enactment is hereby Amendment of
amended as follows :- section 55 of the
principal
enactment.
(1) by the re-numbering of that section as
subsection (1) thereof;
(2) by the addition immediately after the re-
numbered subsection (1), of the following new
subsection :-
"(2) All the taxable supplies of a non-
resident person shall be assessable either
directly or in the name of his agent, in or
derived from Sri Lanka, whether such agent
14 Value Added Tax (Amendment)
Act, No. 9 of 2011
has the receipt of such supplies or not, and
the tax in terms of this Act so assessed whether
directly or in the name of the agent shall be
recoverable in the manner provided for in
this Act, out of the assets of the non-resident
person or from the agent. Where there are more
agents than one, they may be assessed jointly
or severally in respect of the taxable supplies
of the non-resident person and shall be jointly
and severally liable for tax thereon, in terms
of this Act.".
Amendment of 16. Section 58 of the principal enactment is hereby
section 58 of amended as follows :-
the principal
enactment. (1) in the second proviso to subsection (1) of that
section, by the substitution for the words
"Provided further, that any such amount" of
the words and figures "Provided further, that
any such amount prior to any taxable period
commencing on April 1, 2011,"
(2) in subsection (3) of that section, by the
addition immediately after paragraph (b) of
that subsection of the following:-
"(c) (i) fails to furnish the fuller and further
information relating to any claim of
refunds within the period specified in
the letter issued to such person,
(ii) fails to attend in person or make
representation by an authorized
representative at such place and on such
date and at such time as may be specified
in the letter issued to such person,
by any Assessor, the Commissioner-General
may disregard the claim of refund made by
such person:
Provided however, if the registered
person within a reasonable period after the
Value Added Tax (Amendment) 15
Act, No. 9 of 2011
claim of refund being disregarded by the
Commissioner-General prove to the
satisfaction of the Commissioner-General that
he or his authorized representative was
prevented from submitting the required
information as specified in the letter or due
attendance at the interview, as the case may
be, by reason of absence from Sri Lanka, or
sickness or other unavoidable cause, the
Commissioner- General may re-open the
inquiry of the refund claim subject to any
conditions specified by him.";
(3) by the addition immediately after subsection (3) of
that section, of the following new subsection:-
"(4) The Commissioner-General shall
credit, the amount refundable under this
section only to the bank account assigned to a
registered person for such purpose.".
17. Section 58A of the principal enactment is hereby Repeal of section
repealed. 58A of the
principal
enactment.
18. Section 67 of the principal enactment is hereby Amendment of
amended in paragraph (f) of that section, by the substitution section 67 of the
principal
for the words and figures "return under section 21 or comply",
enactment.
of the words and figures "return under section 21, section 25B
or subsection (4) of section 25H or comply.".
19. Section 83 of the principal enactment is hereby Amendment of
amended as follows:- section 83 of
the principal
enactment.
(1) by the insertion immediately before the definition
of the expression "Assessor" of the following
definition:-
' "agent" in relation to a non-resident person or
16 Value Added Tax (Amendment)
Act, No. 9 of 2011
to a partnership in which any partner is a non –
resident person, includes-
(a) the agent, attorney, factor, receiver or
manager in Sri Lanka of such person or
partnership; and
(b) any person in Sri Lanka through whom
such person or partnership is in receipt
of any profits or income, arising in or
derived from Sri Lanka;";
(2) in the definition of the expression "educational
services" by the substitution for the words "by any
educational establishment" of the words "by any
person or partnership.";
(3) in the definition of the expression "taxable period"
by the repeal of item (i) of paragraph (a) and the
re-numbering of items (ii), (iii), (iv), (v), and (vi) as
items (i), (ii), (iii), (iv) and (v) respectively;
(4) by the addition immediately after the definition of
"taxable supply" the following new definition:-
"telecommunication service" means the service
provided by telecommunication operators
licensed under section 17 of the Sri Lanka
Telecommunication Act, No. 25 of 1991 to
other similar operators and to end
subscribers.".
Amendment of 20. The First Schedule to the principal enactment is hereby
the First amended in Part II thereof as follows:-
Schedule to the
principal
(1) in paragraph (a) of that Part by the addition
enactment.
immediately after item (xvii) the following:-
"(xviii) Petrol, Coal or Bitumen specified under
Harmonized commodity Description and
Coding System Numbers for Custom
purposes with effect from November 26,
2010;
Value Added Tax (Amendment) 17
Act, No. 9 of 2011
(xix) (a) machinery and equipment for
manufacture of grain mixed bakery
products with effect from November
29, 2010;
(b) machinery and equipment for the use
of leather or footwear industry or bags,
motor homes, taxi meters, agricultural
machinery and parts, electronic
equipments or articles use manufacture
of fashion jewellery with effect from
January 1, 2011;
(c) light weight electrical and electronic
items with effect from June 1, 2010;
(d) fruit seeds with effect from August 16,
2010;
(e) telecommunication equipment with
effect from January 1, 2011;
as specified under Harmonized
Commodity Description and Coding
System Numbers for Custom purposes;
(xx) any machinery or high-tech equipment for
the telecom industry, having identified
that such machinery or equipment is
imported or purchased exclusively for the
use in the telecom industry and imported
or purchased by any operator of tele
communication services, with effect from
January 1, 2011 ;
(xxi) spare parts and accessories for exclusive
use by Sri Lanka Transport Board and
Department of Sri Lanka Railways
(including imports made on or after
18.08.2010);";
18 Value Added Tax (Amendment)
Act, No. 9 of 2011
(2) in paragraph (b) of that part :
(a) in sub-paragraph (a) of item (i), by the
substitution for the words and figures
"educational services by an educational
establishment (effective from January 1,
2006); or" of the words and figures –
"(a) (1) educational services provided by
an educational establishment
(effective from January 1,2006
and ending on December 31,
2010); and
(2) educational services provided by
any person or partnership with effect
from January 1, 2011); or";
(b) in paragraph (b) of item (ii), by the repeal of
sub-paragraph A of that item and the
substitution therefor of the following –
"(A) (i) such motor coaches with a seating
capacity not less than twenty-eight
passenger seats and used for such public
passenger transport services if such
lease agreement is entered into prior to
January 1, 2004 and ending on
December 31, 2010;
(ii) lorries, tractors or motor coaches with
seating capacity not less than twenty-
eight passenger seats and used for public
passenger transport services by the
holder of any passenger service permit
issued by the National Transport
Commission established by the
National Transport Commission Act,
No. 37 of 1991 or any Provincial Road
Passenger Transport Authorty, in
respect of any rental falling due for
payments on or after January 1, 2011;"
Value Added Tax (Amendment) 19
Act, No. 9 of 2011
(3) by the addition immediately after item (xxx) the
following :-
"(xxxi) telecommunication services (with effect
from January 1, 2011);
(xxxii) locally manufactured briquettes and
pallets using bio mass wastes (with
effect from January 1, 2011;
(xxxiii) locally developed software with effect
from January 1, 2011;
(xxxiv) services being receipts from re-
insurance by any local insurance
company by way of commission or
compensation in an insurance business
(with effect from January 1, 2011);
(xxxv) services being the issue of licenses to
local telecom operators by
Telecommunication Regulatory
Commission, established by the
Sri Lanka Telecommunications Act, No.
25 of 1991 (with effect from January 1,
2011)";
(4) in paragraph (c) of that Part by the addition
immediately after item (xxviii) thereof the
following new items :-
"(xxix) aircraft stimulators and parts specified
under Harmonized Commodity
Description and Coding System
Numbers for Custom purposes with
effect from January 1, 2011;
(xxx) samples in relation to a business worth
not more than rupees twenty five
thousand subject to such terms and
conditions as prescribed by the Director
General of Customs";
20 Value Added Tax (Amendment)
Act, No. 9 of 2011
(5) in paragraph (f) of that Part, by the repeal of items
(ii) and (iii) and the substitution therefor of the
following items :-
"(ii) (a) goods or services to any specified project
identified by the Minister in charge of the
subject of Finance, taking into
consideration the economic benefit to the
country, on which the tax is borne by the
Government with effect from January 1,
2008); or
(b) goods or services to any infrastructure
development project funded through
foreign loans or donations directly to the
Government Ministries (with effect from
January 1, 2011);
and every such project shall be approved
by the Minister of Finance, and
Notification of such approval shall be
published in the Gazette;
(iii) any goods or services provided by any
society registered under the Co-operative
Societies Law, No. 5 of 1972, or under the
respective Statutes enacted by the
Provincial Councils providing for such
registration, or Lak Sathosa registered
under the Companies Act, No. 7 of 2007;
(6) by the addition immediately after paragraph
(g) of that Part, the following new paragraph :-
"(h) goods or services by an institution set up
by the Ministry of Defence for the
rehabilitation of disabled soldiers, in so
far as the activities are carried out by the
participation of such soldiers. (with effect
from January 1, 2011)".
Value Added Tax (Amendment) 21
Act, No. 9 of 2011
21. Any person or partnership supplying any goods or Exemption of
services having an annual turnover of a sum not exceeding certain small and
medium
rupees one hundred million who has defaulted in the payment
enterprises from
of taxes payable by him under this Act in respect of any the payment of
taxable period ending on or before December 31, 2010, due taxes payable by
to the existence generally of any conflict environment or them.
due to any financial constraints of such person or partnership,
shall be exempt from the payment of such charge as is in
default under this Act:
Provided that, the Commissioner-General of Inland
Revenue shall on a request made to him in that behalf, issue
to such person or partnership a Certificate of Exemption in
respect of the sum as in default:
Provided further, the person or partnership to whom the
Certificate of Exemption is issued, shall simultaneously
forward to the Commissioner-General of Inland Revenue a
written assurance to the effect that such person or partnership
shall be responsible for the payment of all sums which may
become payable by him under this Act, in respect of any
future taxable period commencing on or after January 1, 2011.
22. Any person who collects the Value Added Tax as Indemnity.
provided for in this Act during the period commencing from
December 31, 2010, and ending on the date of the coming
into operation of this Act, shall be deemed to have acted with
due authority and such collection shall be deemed to have
been, and to be, validly made and such person is hereby
indemnified against all actions civil or criminal, in respect of
any such collections.
23. In the event of any inconsistency between the Sinhala text to
Sinhala and Tamil texts of this Act, the Sinhala text shall prevail in case of
inconsistency.
prevail.
Ports and Airports Development Levy 7
Act, No. 18 of 2011
Annual subscription of English Bills and Acts of the Parliament Rs. 885 (Local), Rs. 1,180
(Foreign), Payable to the SUPERINTENDENT, GOVERNMENT PUBLICATIONS BUREAU, DEPARTMENT OF
GOVERNMENT INFORMATION, NO. 163, KIRULAPONA MAWATHA, POLHENGODA, COLOMBO 05 before 15th
December each year in respect of the year following.
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