2. Amendment of section 2 of the Value Added Tax Act…

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

Section 2 of the Value Added Tax Act, No.14 of 2002

(hereinafter referred to as the “principal enactment”) is hereby amended as follows:-

(1)

in subsection (2) of that section:-

(a)

by the repeal of item (i) of sub-paragraph (e) and the substitution therefor of the following:-

“ (i)

a person engaged in any Strategic

Development Project in terms of subsection (4) of section 3 of the

Strategic Development Projects Act,

No.14 of 2008, as is referred to in sub-paragraph (i) of paragraph (f) of Part II of the First Schedule, during the project implementation period, or a registered person engaged in any specific project referred to in sub-paragraph (ii) of paragraph (f) of

PART II of the First Schedule (effective from April 1, 2011)”;

Act, No. 7 of 2012

(2)

by the addition immediately after item (iv) thereof, of the following:-

“(v)

any registered person who supplies any goods or services on or after April 1,

2011, to any registered person referred to in items (i), (ii), (iii) or (iv) above, provided that the Commissioner -

General is, on the information available, satisfied that the value of such supplies exceeds fifty per-centum of the total supplies of such registered person who supplies such goods or services.”;

(3)

by the addition immediately after paragraph (c) of the second proviso to subsection (3) of that section of the following:-

“(d)

plant, machinery or equipment imported by any enterprise qualified for a tax exemption under section16D and 17A of the Inland Revenue Act, No. 10 of 2006, for the use by such enterprise for the purposes specified in any agreement entered into with the Board of

Investment of Sri Lanka established under the Board of Investment of Sri

Lanka Law, No. 4 of 1978, where any such agreement provides that tax is exempted under item (xxxiv) of paragraph (c) of PART II of the First

Schedule, during the project implementation period, subject to the fulfillment of the conditions specified in the agreement.”.

Read on from s 3