Finance Act 2004 · 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 chargeable from every person and every partnership for each year of assessment commencing on or after April, 1, 2004 (hereinafter in this Act referred to as “the relevant year of assessment”) in respect of every part of the liable turnover of such person or partnership for that relevant year of assessment, at the rate specified in the Schedule to this Act :
Provided that no Service Charge shall be charged from any person or partnership being a BOI enterprise, for the relevant year of assessment commencing on April 1, 2004 .
Notwithstanding the provisions of subsection (1), the
Service Charge chargeable from any person or partnership for any relevant year of assessment shall be charged if and only if, the liable turnover of such person or partnership for that relevant year of assessment exceeds rupees fifty million :
Provided that the Service Charge chargeable from any person or partnership for any relevant year of assessment shall in no case exceed rupees fifty million.
2–H 022757-10,275 (2004/08)
In this section—
“liable turnover” in relation to any person or partnership and to any relevant year of assessment means, the aggregate turnover of every trade, business, profession or vocation other than any trade, business, profession or vocation the commercial operations of which commenced, whether by such person or partnership or by 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 year of assessment, 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, being the turnover for the year of assessment immediately preceding that relevant year of assessment ; and
“turnover” in relation to any trade, business, profession or vocation and to any year of assessment means the total amount receivable, whether actually received or not, from every transaction entered into in that year of assessment 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 ;
the total proceeds from the disposal of any capital asset in respect of which an allowance for depreciation has been granted under section 23 of the Inland Revenue Act ; and
the amount of any bad debt incurred by that trade, business, profession or vocation during that year of assessment, being an amount which had been included in the liable turnover of such trade, business, profession or vocation of any previous year of assessment, increased by the amount of any sum received during that year of assessment on account of any bad debt written off or allowed in any previous year of assessment.
Provided that—
in the case of a bank, the receipts of such bank by way of, or on account of, interest, discounts, dividends, exchange, service charges, commissions, brokerage and any other income derived by the bank in the course of its business shall be deemed to be included in 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 be included in the turnover of such insurance business.
Part II
Imposition of Cellular Mobile Telephone Subscribers’ Levy
Part III
Imposition of International Telecommunications Operators Levy
Part IV