11. Amendment of section 25B of the principal enactment

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

Section 25B of the principal enactment is hereby amended as follows:–

(1)

In subsection (1) of that section –

(a)

in paragraph (a) of that subsection by the substitution for the words and figures “period prior to January 1, 2011; and” of the words and figures “period prior to January 1, 2011;”;

(b)

in paragraph (b) of that subsection by the substitution for the words and figures

“commencing on or after January 1, 2011.”

of the words and figures “commencing on or after January 1, 2011 but ending prior to April 1, 2017;”;

(c)

by the insertion immediately after the proviso to paragraph (b) of that subsection the following new paragraph:–

“(c)

twelve months for any taxable period commencing on or after January 1,

2017”.

(d)

by the insertion of the following proviso to paragraph (c) of that subsection:–

“Provided that, in the case of a specified institution or any person whose accounts are made up for a period of twelve months ending on the 31st day March, such period of twelve months may be commenced on the 1st day of April:

Provided further, in the event of changing the accounting period with the approval of the Commissioner-General, the taxable period may be adjusted at the time of such change.

(2)

by the repeal of subsection (2) of that section and the substitution therefor of the following new subsections:-

“(2) Every registered specified institution or other person shall in respect of each taxable period furnish a return in the specified form –

(a)

before the end of the following month of the taxable period, if such taxable period is a taxable period commencing prior to January 1, 2017; and

(b)

within six months immediately succeeding the end of that taxable period, if such taxable period is a taxable period commencing on or after

January 1, 2017.

(2A)

(a) Every registered person who furnishes a return which is not in such form or fails to furnish an interim estimate on every six months referred to in paragraph (b) of the proviso to subsection (1) of section 25C or fails to furnish the contents of such return or the interim estimate as specified by the

Commissioner-General, shall be deemed for the purposes of this Act, not to have furnished a return of Value Added Tax on the supply of financial services.

(b)

Where any registered person furnishes a return of Value Added Tax on the supply of financial services or an interim estimate on or before the date as specified in this section and paragraph (b) of the proviso to subsection (1)

of section 25C for any taxable period or any six months period, as the case may be, and is deemed under the provisions of paragraph (a)

of subsection (2A) of section 25B not to have furnished a return of Value Added Tax on the supply of financial services, Assistant

Commissioner shall, before the expiry of thirty days from the due date for the submission of the return or interim estimate, inform such person in writing, that the return or the interim estimate furnished by him does not contain all such particulars in such form and relevant schedules as specified by the Commissioner-General.

(c)

Where any registered person receives any notice under paragraph (b), such person may within thirty days of receipt of such notice, furnish to the Commissioner-General all such particulars in such form and relevant schedules required to make the return submitted a proper return, and then the provisions of paragraph (a) shall thereafter not apply in respect of such return.”.

(3)

in paragraph (a) of subsection (3) of that section, by the substitution for the words “in this section.”

of the following:-

“in this section:

Provided that, for any taxable period commencing on or after January 1, 2017, the tax payable by every registered specified institution or other person on monthly basis shall be adjusted with the total liability for every six months period on the interim estimate referred to in the proviso to paragraph (b) of section 25C and payable with the submission of the interim estimate if the monthly payments made are less than the tax calculated based on the interim estimate.”.

Read on from s 12