As enacted

Contents

2. Amendment of section 3 of Act…

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

Section 3 of the Nation Building Tax Act, No. 9 of 2009 (hereinafter referred to as the “principal enactment”)

as last amended by Act, No. 10 of 2014 is hereby further amended as follows:-

(1)

in subsection (2) of that section –

(a)

in paragraph (iii) thereof by the repeal of the first proviso and substitution therefor of the following:-

“Provided that, the liable turnover from the supply of any financial service in Sri Lanka, by any person carrying on the business of providing financial services shall, notwithstanding anything to the contrary in any other provisions of this Act, be –

(a)

for any quarter ending on or before

September 30, 2014 and the period commencing on October 1, 2014 and ending on October 24, 2014, the value addition attributable to such financial service, calculated for the purposes of applying the attributable method referred to in subsection (4) read with subsection (5) of section 25C of the

Value Added Tax Act, No. 14 of 2002, for the payment of Value Added Tax on the supply of financial services; and

(b)

for the period commencing from

October 25, 2014 and ending on

December 31, 2014 and for any quarter commencing on or after January 1,

2015, the value of supply referred to in subsection (2) of section 25A of the

Value Added Tax Act, No. 14 of 2002:

Provided however, the value addition attributable to such financial services shall be computed for the payment of tax on the business of financial services for the purpose of this

Act by applying the attributable method referred to in subsection (4)

read with subsection (5) of section 25C of the Value Added Tax Act, No. 14 of 2002.”;

(b)

by the insertion immediately after paragraph (iii) thereof, the following new paragraph:-

“(iiiA) For the purposes of paragraph (iii), with reference to any person referred to in paragraph (c) of subsection (1) of section 2

arising from the business of real estate and improvement thereon, means the value of that service ascertained for the purpose of Value

Added Tax Act under subsection (7) of section 5 of the Value Added Tax Act, No. 14 of

2002, but does not include the value of any excepted service referred to in PART II of the

First Schedule.”

(c)

in paragraph (iv) of that subsection-

(i)

by the substitution in subparagraph (9)

for the words “foreign currency; and”

of the words “foreign currency;”;

(ii)

by the repeal of subparagraph (10) and substitution therefor of the following new subparagraphs:-

“(10) LP Gas;

(11)

any motor vehicle identified under Harmonized Commodity

Description and Coding Numbers for

Custom purposes and liable to Excise

Duty under the Excise (Special

Provisions) Act, No. 13 of 1989, on the importation, including such motor vehicles in the stock remain unsold as at October 25, 2014 which would have been otherwise liable to such Excise duty on the importation, if they were imported after October 25, 2014, insofar as, such vehicles are sold by the importer himself;

(12)

cigarettes identified under

Harmonized Commodity Description and Coding Numbers for Custom purposes and liable to Excise Duty under the Excise (Special Provisions)

Act, No. 13 of 1989 and Cess under Sri

Lanka Export Development Act, No. 40

of 1979, on the importation, including cigarettes in the stocks remain unsold as at October 25, 2014 which would have been otherwise liable to such

Excise Duty and Cess on the importation if they were imported after

October 25, 2014 insofar as, such cigarettes are sold by the importer himself.; and

(13)

liquor identified under the

Harmonized Commodity Description and Coding Numbers for Custom purposes and liable to Custom Duty under the Revenue Protection Act, No.

19 of 1962 and Cess under the Sri Lanka

Export Development Act, No. 40 of 1979 on the importation, including liquor imported prior to October 25,

2014 in the stock remain unsold as at

October 25, 2014 which would have been otherwise liable to such Custom

Duty and Cess on the importation, if they were imported after October 25,

2014 insofar as, such liquor is sold by the importer himself.”.

(2)

in subsection (4) thereof, by the repeal of paragraph (iii) and the substitution therefor of the following:-

“(iii)

the liable turnover of such person from the supply of any goods or services other than services referred to in paragraph (iv) and which does not exceed-

(a)

the sum of five hundred thousand rupees if such relevant quarter is any quarter commencing on or after January 1, 2011 but prior to January 1, 2013;

(b)

the sum of three million rupees if such relevant quarter is any quarter commencing on or after January 1, 2013

but prior to January 1, 2015; and

(c)

the sum of three million seven hundred and fifty thousand rupees if such relevant quarter is any quarter commencing on or after January 1, 2015;”.

Read on from s 3