Act of Parliament · As enacted
Economic Service Charge (Amendment) Act 2017
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
s 1Short title and date of operation
This Act may be cited as the Economic Service
Charge (Amendment) Act, No. 7 of 2017 and shall be deemed to have come into operation on April 1, 2016 unless the dates on which certain provisions shall come into operation are specified in such sections.
s 2Amendment of section 2 of Act, No. 13 of 2006
Section 2 of the Economic Service Charge Act,
No. 13 of 2006 (hereinafter referred to as the “principal enactment”) is hereby further amended as follows:—
by the repeal of subsection (1) of that section and the substitution therefor of the following new subsection:—
“(1) 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—
commencig on or after April 1, 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; and
on the Cost, Insurance and Freight (CIF)
value certified by the Director-General of Customs, of such person or partnership—
on or after April 1, 2016, in respect of every consignment of imports of any article subject to
Special
Commodity
Levy under the provisions of Sprecial
Commodity Levy Act, No. 48 of 2007;
on or after November 24, 2016, in respect of every consignment of imports of gold or other precious metal; or
on or after April 1, 2017, in respect of every consignment of imports of motor vehicles, at the appropriate rates specified in the Schedule I,
Schedule II, Schedule III or Schedule IV as the case may be, to this Act:
Provided that, notwithstanding anything to the contrary in this Act and the rates specified in the
Schedule I, Schedule II, Schedule III or Schedule IV as the case may be to this Act, the rate of the service charge, chargeable in respect of the turnover arising on or after April 1, 2008, but prior to April 1, 2016
from the export of any articles or goods, shall not exceed 0.25 per centum.”.
in subsection (2) of that section—
by the substitution, for the words “the service charge shall not be charged from any person or partnership for any relevant quarter,”, of the words and figures “the service charge shall not be charged from any person or partnership other than any person or partnership who or which becomes liable to the service charge under paragraph (b) of subsection (1), for any relevant quarter,”;
in paragraph (d)—
by the substitution, for the words and figures “commencing on or after April 1, 2012”, of the words and figures “commencing on or after April 1, 2012 but prior to
April 1, 2017”;
by the substitution, for the words
“fifty million:”, of the words “fifty million;”;
by the addition, immediately paragraph (d)
of the following new paragraph—
“(e)
commencing on or after April 1,
2017 does not exceed rupees twelve million and five hundred thousand:”; and
in sub-paragraph (ii) of the proviso, by the substitution, for the words and figures
“commencing on or after April 1, 2009.”, of the words and figures“commencing on or after April 1, 2009, but prior to April 1,
2016.”; and
in the proviso to paragraph (a) of subsection (3) of that section by the substitution, for the words and figures “commencing on or after April 1, 2012, where such”, of the words and figures “commencing on or after April 1, 2012 ending on or before March 31, 2016, where such”.
s 3Amendment of section 3 of the principal enactment
Section 3 of the principal enactment is hereby further amended as follows:—
in the proviso to subsection (3) of that section, by the substitution, for the words “tax payable by such person or such partnership for each such year of assessment.”, of the words and figures—
“tax payable by such person or such partership for each such year of assessment:
Provided further, the balance, if any, of the amount levied for any relevant quarter commencing on or after April 1, 2016 as the service charge after the deduction in accordance with subsections (1) or (2) as the case may be, apportioned to each year of assessment within the period of two years immediately succeeding the first mentioned year of assessment and the amount so apportioned to any such year of assessment shall be deducted to the extent, it can be so deducted from the income tax paybale by such person or partner of such partnership for that year of assessment.”; and
by the insertion immediately after subsection (3B)
of that section, of the following new subsection:—
“(3C) The amount of service charge paid by any person or partnership who or which becomes liable to the service charge under paragraph (b)
of subsection (1) of section 2—
may be credited against the service charge liability of such person or partnership which arises under paragraph (a) of subsection (1) of section 2 for any quarter in which the service charge is made under paragraph (b) of subsection (1) of section 2; and
the amount of service charge credited under paragraph (a) and the service charge which had been paid under paragraph (b) of subsection (1) of section 2 but had not been credited as stated in paragraph (a) shall be deducted as in accordance with subsection (1), (2) or (3) of this section.”.
s 4Amendment of section 13 of the principal enactment
Section 13 of the principal enactment as last amended by Act, No. 13 of 2015 is hereby further amended in the definition of the expression “person”, by the repeal of paragraph (g) and the substitution therefor of the following:—
“(g)
the Central Bank of Sri Lanka prior to March 31,
2017; and”.
s 5Amendment of Schedule III of the principal enactment
Schedule III to the principal enactment is hereby amended by the substitution, for the words and figures “For the period commencing on April 1, 2012”, of the words and figures “For the period commencing on April 1, 2012, but prior to April 1, 2016”.
s 6Insertion of Schedule IV in the principal enactment
The following new Schedule is hereby inserted immediately after Schedule III to the principal enactment and shall have effect as Schedule IV of that enactment:—
“SCHEDULE IV
(section 2)
For the period commencing on April 1, 2016
Part of the Liable Turnover
Rate of the Sevice Charge
Applicable to that Part
1. on the relevant turnover other than the relevant turnover of a person or a partnership of the retail sale of petrol, diesel or kerosene
2. on 1/10 of the relevant turnover of a person or partnership from the retail sale of petrol, diesel or kerosene 0.5 per centum 0.5 per centum.”.
s 7Validation
Any person who is authorized to collect the Economic
Service Charge as provided for in this Act during any period commencing from April 1, 2016 and ending on the date on which the Certificate of the Speaker is endorsed in respect 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 such collection:
Provided that, the aforesaid provisions shall not affect any decision or Order made by any Court or any proceedings pending in any Court in respect of any tax collected as provided for in this Act during such period.
s 8Sinhala text to prevail in case of inconsistency
In the event of any inconsistency between the Sinhala and Tamil texts of this Act, the Sinhala text shall prevail.