Act-No-11of-2012-Economic-Service-Charge-Amendment.pdf
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PARLIAMENT OF THE DEMOCRATIC
SOCIALIST REPUBLIC OF
SRI LANKA
ECONOMIC SERVICE CHARGE
(AMENDMENT) ACT, No. 11 OF 2012
[Certified on 30th March, 2012]
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 March 30, 2012
PRINTEDAT THE DEPARTMENTOFGOVERNMENT PRINTING, SRILANKA
TO BEPURCHASED AT THEGOVERNMENT PUBLICATIONSBUREAU, COLOMBO 5
Price : Rs. 5.00 Postage : Rs. 5.00

Economic Service Charge (Amendment) 1
Act No. 11 of 2012
[Certified on 30th March, 2012]
L.D.—O. 6/2012
ANACT TO AMEND THE ECONOMIC SERVICE CHARGE
ACT, NO. 13 OF 2006
BE it enacted by the Parliament of the Democratic Socialist
Republic of Sri Lanka as follows:-
1. This Act may be cited as the Economic Service Short title.
Charge (Amendment) Act, No. 11 of 2012.
2. Section 2 of the Economic Service Charge Act, Amendment of
No. 13 of 2006 (hereinafter referred to as the “principal section 2 of Act,
No. 13 of 2006.
enactment”) is hereby amended as follows:-
(1) in subsection (1) of that section, by the substitution
for the words and figures “Schedule I or Schedule II
as the case may be” of the words and figures
“Schedule I, Schedule II or Schedule III as the case
may be”;
(2) in subsection (2) of that section, by the repeal of
paragraph (c) thereof, and the substitution therefor
of the following new paragraphs –
“(c) commencing on or after April 1, 2011, but
before April 1, 2012, does not exceed rupees
twenty-five million;
(d) commencing on or after April 1, 2012, does
not exceed rupees fifty million.”; and
(3) in subsection (3) of that section-
(a) in paragraph (a) by the substitution for the
words “whether directly or through an agent
or more than one agent:” of the following:-
2 Economic Service Charge (Amendment)
Act No. 11 of 2012
“whether directly or through an agent or more
than one agent:
Provided that, in relation to any relevant
quarter commencing on or after April 1, 2012,
where such part of the taxable income as
consists of profits from any trade, business,
profession or vocation assessed under the
provisions of Inland Revenue Act, No. 10 of
2006 for the year of assessment which ended
immediately prior to the commencement of
the year of assessment to which such quarter
belongs, is more than zero, the relevant
turnover for such quarter shall be deemed to
be zero.”;
(b) in paragraph (b)-
(i) in item (viii) of sub-paragraph (a) of
that paragraph, by the substitution for
the words “Tourism Act, No. 38 of
2005; and” of the words “Tourism Act,
No. 38 of 2005;” and
(ii) by the addition, immediately after item
(viii) of sub-paragraph (a) of that
paragraph, of the following new item:—
“(ix) proceeds from the sale of any clay
roof tile or pottery product by any
manufacturer of such product;
and”.
Replacement of 3. Schedule II to the principal enactment is hereby
Schedule II to repealed and the following Schedule is substituted therefor:-
the principal
enactment.

Economic Service Charge (Amendment) 3
Act No. 11 of 2012
“Schedule II (Section 2)
For the period commencing on April 1, 2011 ending on March
31, 2012
Part of the Liable Turnover Rate of the Service Charge
Applicable to that Part

1.(a) of BOI apparel exporters
(b) of BOI trading houses
0.1%
(c) of BOI textile manufacturers
for supplying to exporters
2.(a) the profits from which are exempt
from income tax.
(b) tax at concessionary rates.
(c) a loss.
(d) of persons engaged in whole sale
or retail sale (other than sale by
manufacturers, distributors as
defined in the ESC Act, and Dealers 0.25%
in Motor vehicles, liquor or tobacco
products).
(e) from primary conversion of tea,
rubber or coconuts including
desiccated coconuts, coconut oil,
coconut fiber, copra and sheet
rubber (excluding alcoholic
beverages).
(f) of advertising agents.
3. of any other business including-
(a) dealers in motor vehicles, liquor or
tobacco products. 1%”
(b) businesses opted to follow the
respective definition of turnover as
defined by Gazette Notification
(notwithstanding the threshold)

4 Economic Service Charge (Amendment)
Act No. 11 of 2012
Insertion of 4. The following new Schedule is hereby inserted
Schedule III in immediately after Schedule II of the principal enactment
the principal
and shall have effect as Schedule III of that enactment:-
enactment.
“Schedule III (Section 2)
For the period commencing on April 1, 2012
On the liable turnover 0.25 per centum.”.
Retrospective 5. Schedule II of the principal enactment as replaced by
effect. section 3 of this Act shall for all purposes be deemed to have
come into operation on April 1, 2011.
Sinhala text to 6. In the event of inconsistency between the Sinhala
prevail in the and Tamil texts of this Act, the Sinhala text shall prevail.
case of
inconsistency.

Economic Service Charge (Amendment) 5
Act No. 11 of 2012
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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