Finance (Amendment) Act 2009

This Act may be cited as the Finance (Amendment)

Act, No. 18 of 2009.

The Finance Act No. 5 of 2005 (hereinafter referred to as “principal enactment”) is hereby amended in section 13 of Part III of that Act, (Construction Industry Guarantee

Fund Levy) by the Substitution for the word “the total cost which shall be payable by each contractor or sub-contractor”, of the words “the total contract value which shall be payable to each contractor or sub-contractor”.

The following new section is hereby inserted immediately after section 13 of the principal enactment and shall have effect as section 13A of that enactment :-

13A. (1) Where any person or partnership makes any payment on or after April 1,

2009 to any construction contractor or sub-contractor, amounting to the value of any construction contract or sub-contract enforced in Sri Lanka by such contractor or subcontractor, as the case may be, under any agreement entered into on or after January 1,

2005, then such person or partnership shall be required to deduct from such payment, the

Construction Industry Guarantee Find Levy at the appropriate rate specified in the Second

Schedule to this Act, and to issue to such contractor or sub-contractor, a statement setting out details of such deduction in the format as specified by the Commissioner-General.

The provisions of sections 140, 142,

The amount deducted as Construction

On the production of the certificate relating to such deduction made and remitted to the Commissioner-General, any construction contractor or sub-contractor shall be entitled to deduct form the amount of the Construction

Section 14 of the principal enactment is hereby amended, by the substitution for the words and figures “The

Construction Industry Guarantee Fund Levy payable under section 13 shall be remitted by the construction contractor”, of the words and figures” any balance of Construction

Industry Guarantee Fund Levy payable by any contractor or sub-contractor under Section 13, after deducting such levy deducted by the payer under section 13A, shall be remitted by such construction contractor or sub-contractor as the case may be”.

Section 20 of the principal enactment is hereby amended, by the repeal of the definition of the expression,

“contract value” and the substitution therefore, of the following definition :—

“ “contract value” means the amount or the amounts stated in the letters of acceptance and which are thereafter adjusted in accordance with the provisions of the contract. The said contract value shall be the sum total of individual contracts or of several contracts which have been entered into in respect of the carrying out of any construction work and shall include sub-contract values and such other construction costs that may be incurred in carrying out such works, but shall not include any Value

Added Tax payable under the Value Added Tax Act,

No. 14 of 2002 ; and”.

First Schedule of the principal enactment is hereby amended, by the substitution for items 4, 5 and 6 thereof, of the following new item :-

“4. (a)

the Inland Revenue Act, No. 38 of 2000 (other than the provisions Chapters XV, XVI and XVII, and sections 33 and 61), in so far as such Act applies to the period commencing on April 1,

2005 and ending on March 2006 ;

the Inland Revenue Act, No. 10 of 2006 (other than the provisions Chapter XVI, XVII. XVIII and XXI, and sections 36 and 65), in so far as such Act applies to the period commencing on

The Inland Revenue Act, No. 10 of 2006 (other than the provisions Chapter XVI, XVII. XVIII and XXI, and sections 36 and 65), in so far as such Act applies to any company and to any period commencing on or after April 1, 2008.”

Second Schedule of the principle enactment is hereby amended as follows :—

in item 2 thereof by the substitution for the words

in item 3 thereof by the substitution for the words

In the event of any inconsistency between the Sinhala and Tamil texts of this Act, the Sinhala text shall prevail.