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8. Amendment of section 22 of the principal enactment

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

Section 22 of the principal enactment is hereby amended as follows: -

(1)

in the second proviso to subsection (5) of that section-

(a)

in paragraph (c) thereof, by the substitution for the words and fi gures “the tax differed under section 2”, of the words and fi gures

“the tax differed under section 2 in respect of any taxable period prior to October 1, 2025”;

(b)

in paragraph (e) thereof-

(i)

by the substitution for the words and fi gures “with effect from April 1, 2011, being a supplier”, of the words and fi gures “with effect from April 1, 2011

but prior to October 1, 2025, being a supplier”; and

(ii)

by the substitution for the words and fi gures “in item (i) to (vii) of paragraph (e) of subsection (2) of section 2.”, of the words and fi gures “in item (i) to (vii) of paragraph (e) of subsection (2) of section 2; and”; and

(c)

by the addition immediately after paragraph (e) of the following: -

“(f) there is an excess of input tax including tax deferred under section 2, of any eligible exporter defi ned under section 83 of this Act or any registered person whose value of supplies of goods or services was more than fi fty per centum of his total supplies for that taxable period who is supplying goods or services to any Strategic

Development

Project identifi ed under subsection (4) of section 3 of the Strategic Development Project

Act, No. 14 of 2008 or any specifi ed project identifi ed by the Minister under item (ii) of paragraph (f) of Part

II of the First Schedule to this Act or item (xxi) of paragraph (b) of Part III of the First Schedule to this Act-

(i)

for the period prior to January 1, 2024, specifi ed in item (i) and item (ii) of paragraph (f) of Part

II of the First Schedule to this

Act; or

(ii)

for any period on or after January 1, 2024, specifi ed in item (xx)

and item (xxi) of paragraph (b)

of Part III of the First Schedule to this Act.”;

(d)

by the substitution in subparagraph (c) thereof, for the words and fi gures “commencing on or after April 1, 2011,” of the words and fi gures,

“commencing on or after April 1, 2011 and ending on or before September 30, 2025,”;

and

(e)

by the addition immediately after subparagraph (c), of the following new subparagraph: -

“(d) if the excess is in respect of any taxable period commencing on or after October 1, 2025, such excess shall be refunded –

(i)

after furnishing a proper return containing all particulars in terms of subsection (1) of section 21; and

(ii)

not later than forty-fi ve days from the last day of the month after expiry of such taxable period or from the date of furnishing a proper return referred to in sub-paragraph (i) after issuing a notice under subsection (1B)

of section 21 for the relevant taxable period, whichever is later, subject to the conditions specifi ed in the Risk Based Refund Scheme as may be specifi ed by the

Commissioner-General by an Order published in the Gazette.”;

(2)

in subsection (6) of that section-

(a)

in paragraph (vi) thereof, by the substitution for the words “if the payment in respect of”, of the words “for any period prior to the date of commencement of this (Amendment) Act, if the payment in respect of”;

(b)

in the fi rst proviso to that subsection-

(i)

in paragraph (b) by the substitution for the words and fi gures “item (xxv) and (xxvi)

of paragraph (b) of Part III” of the words and fi gures “item (xx)

and (xxi) of paragraph (b) of

Part III”; and

(ii)

by the substitution for the words and fi gures “item (xxvi) of paragraph (b) of Part III” of the words and fi gures “item (xxi) of paragraph (b) of Part III”;

(c)

by the addition immediately after second proviso to that subsection of the following new proviso: -

“Provided further, notwithstanding the provisions of subsection (2), the tax paid by the employer as a registered person, on the payments borne by him on the outsourcing of the supply of meals and transport, in respect of a benefi t referred to in the proviso to subsection (3) of section 5 may be allowed as the input credit of a registered person irrespective of value of such benefi t is zero.”.

(3)

in subsection (10) of that section-

(a)

in item (ii) of the second proviso thereof, by the substitution for the words “guidelines specifi ed by the Commissioner General;

and”, of the words and fi gures “guidelines specifi ed by the Commissioner General for any period prior to October 1, 2025; and”;

(b)

in the third proviso thereof-

(i)

by the substitution for the words and fi gures “item (xxvi) of paragraph (b) of

Part III” of the words and fi gures “item (xxi) of paragraph (b) of Part III”; and

(ii)

in paragraph (b) of third proviso, by the substitution for the words and fi gures

“item (xxv) and (xxvi) of paragraph (b) of Part III” of the words and fi gures

“item (xx) and (xxi) of paragraph (b) of

Part III”.

Read on from s 9