As enacted

Contents

48. Amendment of section 195 of the principal enactment

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

Section 195 of the principal enactment is hereby amended as follows: -

(1)

by the substitution for the words and the figure “(1)

In this Act,” of that section, of the words “In this

Act,”;

(2)

by the substitution for the definition of the expression “agricultural business” of that section, of the following definitions:-

“ “agricultural business” means the business of agro farming or agro processing, but excludes farming of, or processing of liquor or tobacco produces or products, as the case may be;

“agro farming” means-

(a)

the tillage of the soil and cultivation of land with plants of any description, cultivation in green house, bee-keeping, rearing of fish, shrimp farming or animal husbandry, poultry farms, hatchery, veterinary or artificial insemination services;

(b)

the cleaning, sizing, sorting, grading, cutting or chilling of any produce produced out of any activity referred to in paragraph (a)

by any person who is engaged in

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any such activity, in preparation of such produce for the market but excludes the agro or food processing;

“agro processing” means the processing of any locally produced agricultural, fishing, or animal product and includes an undertaking for the dehydrating, milling, packaging, canning for the purpose of changing the form, contour or physical appearance of such product in preparation for the market but excludes an undertaking of deep-sea fishing or manufacturing;”;

(3)

in paragraph (a) of the definition of the expression

“dividend” of that section, by the substitution for the words “share buy-back”, of the words “ share buy-back”;

(4)

in the definition of the expression “entertainment”

of that section, by the substitution for the words

“person of food, beverages, tobacco”, of the words

“person of liquor, tobacco”;

(5)

by the insertion immediately after the definition of the expression “manager” of that section, of the following new definition: -

“ “manufacture” means a change in a non-living physical object, article or thing-

(a)

resulting in transformation of such object, article or thing into a new and distinct object, article or thing having a different name, character or use; or

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(b)

bringing into existence of a new and distinct object, article or thing with a different chemical composition or integral structure;”;

(6)

in the definition of the expression “Small and

Medium Enterprise” of that section–

(a)

by the substitution for paragraph (b) of that definition, of the following paragraph:–

“(b)

subject to paragraph (d), the person does not have an associate that is an entity;”;

(b)

by the addition immediately after paragraph (c) of that definition, of the following new paragraph:–

“(d)

the person’s or his associate’s aggregate annual gross turnover is less than

Rs. 500,000,000, if such associate is an entity or entities;”;

(7)

in the definition of the expression “specified undertaking” of that section, by the addition immediately after paragraph (k) of that definition, of the following new paragraphs: -

“(l)

sale of goods manufactured in Sri Lanka by an export-oriented company 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, to-

(i)

any company which has entered into an agreement with the Board of

Investment of Sri Lanka under section

Act, No. 10 of 2021 17 of the Board of Investment of

Sri Lanka Law, No. 4 of 1978 including a company enjoying tax holidays under the Strategic Development Projects Act,

No. 14 of 2008 and which is permitted to import project related goods or raw materials on duty free basis under the provisions of such agreement, during the project implementation period; or

(ii)

any person eligible to import specific goods on duty free basis under any

Government Authority, but, up to the quantity approved by the Board of Investment of Sri Lanka as import replacement within the three years period commencing on April 1, 2021;

(m)

bunkering services provided for the supply of marine fuel, including the supply of marine fuel to local bunker suppliers within a specified port premises;”;

(8)

by the repeal of the definition of the expression

“Sri Lankan permanent establishment” of that section, and the substitution therefor of the following definition: -

“ “Sri Lankan permanent establishment” means any business connection or fixed place of business through which the business of the enterprise is wholly or partly carried out, irrespective of the number of days of such business being carried out in Sri Lanka;”;

(9)

in the definition of the expression “tax return” of that section, by the substitution for the words

“means a return,” of the words “means a return or annual statement,”;

(10)

by the insertion immediately after the definition of the expression “taxpayer” of that section, of the following new definition: -

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“ “Tertiary and Vocational Education Commission”

means the Tertiary and Vocational Education

Commission established under the Tertiary and

Vocational Education Act, No 20. of 1990;”.

Read on from s 49