As enacted

Contents

3. Amendment of the section 3 of the principal enactment

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

Section 3 of the principal enactment is hereby amended as follows:—

(1)

in subsection (1) of that section—

(a)

by the substitution for all the words and figures from “every person to whom this Act applies, calculated” to “in the following manner:-”, of the words “every person to whom this Act applies, calculated at the appropriate rate specified in the Second Schedule to this Act, in the following manner:—”

(b)

in paragraph (ii) thereof, by the substitution for the words and figures “paragraph (b) or (c) of subsection (1)”, of the words “paragraphs (b), (c) or (d) of subsection (1)”

(2)

in subsection (2) of that section—

(a)

by the substitution in paragraph (i) thereof, for the words and figures “under section 6 of the Value Added Tax Act, No. 14 of 2002;” of the words and figures “under section 6 of the

Value Added Tax Act, No. 14 of 2002, but does not include the value of any excepted article referred to in the First Schedule to this Act;”;

(b)

by the substitution in paragraph (ii) thereof, for the words “of every article manufactured by such person;” of the words “of any article manufactured by such person, other than any excepted article referred to in the First Schedule to this Act;”;

(c)

by the substitution in paragraph (iii), for the words “any service referred to in that paragraph.”, of the following:—

“any service referred to in that paragraph, other than any excepted service referred to in the First Schedule to this Act;

(iv)

with reference to any person referred to in paragraph (d) of subsection (1) of section 2 and to any relevant quarter means the sum receivable whether received or not from the sale in that quarter, of any article, other than—

(1)

pharmaceuticals;

(2)

any article subject to the Special

Commodity Levy under the Special

Commodity Levy Act, No. 48 of 2007, where such article is subsequently sold by the importer of such article; and

(3)

gems or jewellery, if sold on the payment of foreign currency by any person authorized by the Central Bank of Sri Lanka to accept payment in foreign currency.”.

(3)

in subsection (3) of that section—

(a)

by the substitution, for the words and figures

“in paragraph (ii) or (iii) of that section” of the words and figures “in paragraph (ii), (iii) or (iv) of that section”;

( b) by the addition immediately after paragraph (iii) thereof, of the following paragraphs:—

“(iv)

rebate paid under the Export

Development Rebate in relation to any international event as be approved by the Minister of Finance;

(v)

any turnover from the supply of any goods or services in relation to any international events as approved by the Minister of Finance (with effect from May 12, 2010).”.

(4)

in subsection (4) thereof,

(a)

by the substitution for the words and figures

“paragraph (b) or paragraph (c) of subsection (1) of section 2”, of the words and figures

“paragraph (b), paragraph (c) or paragraph (d)

of subsection (1) of section 2”;

(b)

in paragraph (i), by the substitution for the words “liable turnover of such person for that relevant quarter does not exceeds” of the words and figures “such quarter is a relevant quarter which commenced prior to January 1,

2011 and the liable turnover of such person for that relevant quarter does not exceed;”;

(c)

in paragraph (ii) thereof—

(i)

by the substitution for the words “that relevant quarter optional Value Added

Tax” of the words and figures “that relevant quarter which commenced prior to January 1, 2011, Optional Value Added Tax”;

(ii)

by the substitution for the words and figures “Value Added Tax Act, No. 14 of 2002.” of the following:—

“Value Added Tax Act, No. 14 of 2002;

(d)

by the addition immediately after paragraph (ii) of the following new paragraphs :—

(iii)

such relevant quarter is any quarter commencing on or after January 1, 2011

and the liable turnover of such person from the supply of any goods or services other than services referred to in paragraph (iv)

and paragraph (v), does not exceed the sum of five hundred thousand rupees; and

(iv)

such quarter is a quarter commencing on or after January 1, 2011 and the liable turnover of such person from —

(a)

operating a hotel, guest house, restaurant or other similar business;

(b)

the processing of any locally procured agricultural produce in the preparation for sale;

(c)

providing educational services by any institution established locally for that purpose; or

(d)

supply of labour (manpower), and which do not exceed the sum of twenty five million rupees.”.

Read on from s 4