Economic Service Charge Act 2006 · As enacted · Part I · Imposition of an Economic Service Charge
2. Imposition of an Economic Service Charge
Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.
Official translationFrom Department of Government Printing, unchanged
An Economic Service Charge (hereinafter referred to as “ the service charge”) shall, subject to the provisions of this Act, be charged from every person and every partnership for every quarter of every year of assessment commencing on or after April, I, 2006 (hereinafter in this Act referred to as “a relevant quarter”) in respect of every part of the relevant turnover of such person or partnership for that relevant quarter, at the appropriate rate specified in the Schedule to this Act:
Notwithstanding the provisions of subsection (1), the service charge shall not be charged from any person or partnership for any relevant quarter, in circumstances wherein the relevant turnover of such person or partnership for that relevant quarter does not exceed rupees ten million:
Provided that the service charge chargeable from any person or partnership for any relevant quarter shall in no case exceed rupees fifteen million.
In this section—
“relevant turnover” in relation to any person or partnership and to any relevant quarter means the aggregate turnover for that relevant quarter of every trade, business, profession or vocation carried on or exercised by such person or partnership, as the case may be, in Sri Lanka whether directly or through an agent or more than one agent :
Provided that the relevant turnover for any relevant quarter shall not include the turnover for that relevant quarter of any trade, business profession or vocation, the commercial operations of which commenced, whether by such person or partnership or any other person or partnership, on a date which falls within the period of thirty six months immediately preceding the first day of that relevant quarter.
For the purposes of the proviso the expression
“trade or business” in relation to any person or partnership shall not include any trade or business which deals in the wholesale or retail of any goods not manufactured or produced by such person or partnership.
“turnover” in relation to any trade, business, profession or vocation and to any relevant quarter means the total amount receivable, whether actually received or not, from every transaction entered into in that relevant quarter in the course of such trade, business, profession or vocation carried on or exercised by such person or partnership, -
after deducting therefrom –
any sum included in such total amount being a sum which represents the value added tax in respect of that transaction, provided that the person or partnership who or which carries on or exercises such trade, business, profession or vocation is at the time of such transaction registered under section 10
of the Value Added Tax Act, No. 14 of 2002;
any sum included in such total amount being the proceeds from the disposal of any capital asset; and
the amount of any bad debt incurred by that trade, business, profession or vocation during that relevant quarter, being an amount which had been included in the relevant turnover of such trade, business, profession or vocation of that or any previous relevant quarter;
and
after adding thereto, any sum received during that relevant quarter on account of any bad debt written off or allowed in any previous quarter :
Provided that –
in the case of a bank, the receipts of such bank by way of, or on account of , interest, discounts, dividend, exchange, service charges, commissions, brokerage or any other income derived by the bank in the course of its business shall be deemed to form part of the turnover of such bank; and
in the case of a person carrying on insurance business, insurance premia received, or receivable, in respect of –
life insurance; and
insurance against damages or destruction by strike, riot, civil commotion, or acts of terrorism and paid into the Consolidated Fund, shall be deemed not to form part of the turnover of such person.
Part II