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Contents

Chapter IX · Special Provisions Relating to the Taxation of Certain Profits and of Dividends Out of Such Profits

58. Rate of tax on profits and income from the supply of certain services to garment exporters

Official English translation. The Sinhala text prevails. Open the official Sinhala text, official PDF on documents.gov.lk

Such part of the profits and income within the meaning of paragraph (a) of section 3, of any garment manufacturer approved by the Textile Quota Board, as consists of profits and income from the supply to any exporter registered with the Textile Quota Board, of the services of sewing any garment, assembly of any garment or any other service which results in the improvement of the value of any garment, made from fabric supplied to such manufacturer by such exporter and exported by such exporter either directly or through any export trading house which has entered into an agreement with the Board of Investment of Sri Lanka under section 17 of the Board of Investment of Sri Lanka Law No. 4

of 1978 shall, notwithstanding anything to the contrary in any other provision of this Act, be chargeable with income tax at the appropriate rate specified in the Fifth schedule to this Act, if —

(a)

such supply is covered by a letter of credit opened in a bank in Sri Lanka on a back to back basis against an international letter of credit for the remittance to

Sri Lanka of the foreign exchange value of the exports related to such supply, or

(b)

(i)

the payment of the consideration for such supply is made in foreign currency by means of a draft or telegraphic transfer made in favour of such manufacturer by such exporter ; and

(ii)

such other documentary evidence as is required by the Commissioner-General to satisfy himself that the garments relating to such supply have in fact been exported, is adduced.

For the purposes of this section “Textile Quota Board” means the Textile Quota Board established under the Textile Quota

Board Act, No. 33 of 1996.

Chapter X

Companies

Chapter XI

Special Cases a – Children

Chapter XII

Chapter XIII

Payment of Tax by Self-Assessment

Chapter XIV

Deduction of Income Tax from Remuneration of Employees by Employers

Chapter XV

Provisions Relating to the Payment of Income Tax by a Government Institution

Chapter XVI

Deductions from Interest Paid by Banks and Financial Institutions

Chapter XVII

Deduction of Income Tax from Specified Fees Paid by Specified Persons

Chapter XVIII

Chapter XIX

Chapter XX

Deduction of Income Tax from Any Annuity or Royalty Paid or Any Management Fee Paid or Similar Payment Made by Any Person or Partnership

Chapter XXI

Retention of Moneys in Certain Provident Funds

Chapter XXII

Assessments

Chapter XXIII

Appeals A-Appeals to the Commissioner-General

Chapter XXIV

Finality of Assessments and Penalty for Incorrect Returns

Chapter XXV

Tax in Default and Sums Added Thereto

Chapter XXVI

Recovery of Tax

Chapter XXVII

Miscellaneous

Chapter XXVIII

Repayment

Chapter XXIX

Penalties and Offences

Chapter XXX

Administration

Chapter XXXI

General

Chapter XXXII

Interpretation

Chapter XXXIII

Application of the Inland Revenue Act…

Schedules