Value Added Tax (Amendment) Act 2012 · As enacted
3. 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.
Official translationFrom Department of Government Printing, unchanged
Section 22 of the principal enactment is hereby amended as follows:-
in subsection (1) of that section, by the repeal of
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the first proviso thereof and the substitution therefor of the following:-
“ Provided that, the amount of tax due on the supply of-
garments within such percentage-
as is permitted for sale locally by the
Board of Investment of Sri Lanka, established by the Board of Investments of Sri Lanka Law, No. 4 of 1978 under any agreement entered into by the manufacturer of garments for export under section 17 of the aforesaid law;
or
as is permitted for sale locally by the
Board of Investment of Sri Lanka, established by the Board of Investments of Sri Lanka Law, No. 4 of 1978, by any other garment manufacturer who manufactures garments for export under the supervision of the Department of
Customs , shall be rupees twenty five for each such garment so supplied within Sri Lanka;
fabric within such percentage -
as is permitted for sale locally by the
Board of Investment of Sri Lanka, established by the Board of Investment of Sri Lanka Law, No. 4 of 1978, under any agreement entered into by the manufacturer of fabric for export under section 17 of the aforesaid law; or
as is permitted for sale locally by the
Board of Investment of Sri Lanka, established by the aforesaid law by any
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other fabric manufacturer who manufactures fabric for export under the supervision of the Department of
Customs, shall be forty rupees per kilogram.”;
in the second proviso to subsection (1), by the substitution for the words and figures “no other tax or levy including any duty under the Customs
Ordinance (Chapter 235) or Cess under subsection (1) of section 14 of Sri Lanka Export Development
Act, No. 40 of 1979, shall be charged or collected on such sale of garments,” of the words and figures “no other tax or levy payable at the point of entry into the country including any duty under the Customs Ordinance (Chapter 235) or Cess under subsection (1) of section 14 of Sri Lanka
Export Development Act, No. 40 of 1979, shall be charged or collected on such sale of garments or fabric.”;
in paragraph (e) of the second proviso to subsection (5) of that section by the substitution for all the words from “there is an excess of input tax” to the words “taxable supplies of the taxable period” of the following:-
“there is an excess of input tax including tax deferred under section 2, of any registered person who is registered with the Textile Quota Board established under the Textile Quota Board Act,
No. 23 of 1996, being a supplier of goods or services to any registered person referred to in paragraph (c)
of subsection (2) of section 2 or any registered person who is registered with the Export Development
Board, who was subsequently brought under the deferment scheme administered by the
Commissioner-General under paragraph (e) of subsection (2) with effect from April 1, 2011, being a supplier of goods to exporters of goods, referred to in paragraph (d) of subsection (2) of section 2,
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the value of supplies to suppliers referred to in paragraph (c), (d) or in the corresponding provisions of paragraph (e) for the taxable period was more than fifty per centum.”;
in the third proviso to subsection (5) of that section by the substitution for all the words from “Provided further" to the words "shall be carried forward." of the following:—
“Provided further, in case of a registered person who imports goods for re-sale without processing, the excess input tax representing the tax paid under subsection (3) of section 2 shall not be refunded, but such input tax including any excess input tax as at July 31, 2002, under the
Goods and Services Tax Act, No. 34 of 1996 shall be carried forward except in a case where such supplies are made to any registered person referred to in items (i), (ii), (iii) or (iv) of paragraph (e) of subsection (2) of section 2 of this Act, subject to the conditions and the limitations specified in the guidelines published for the purposes of applying the deferment for the specified period.”;
in subsection (10) of that section:-
in paragraph (a), by the substitution for the words and figures “The unabsorbed residue, if any, as at December 31, 2010 shall be carried forward and may be claimed by a registered person for any taxable period not exceeding a sum equivalent to ten per centum of the unabsorbed amount for each month, provided that, such sum does not exceed five per centum of the net tax payable after deducting allowable input credit from the output tax by such person;” of the following:-
“The unabsorbed residue, if any, as at
December 31, 2010 shall be carried
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forward and may be claimed by a registered person for any taxable period –
(A)
commencing on or after January 1, 2011 but prior to January 1,
2012, not exceeding a sum equivalent to ten percentum of the unabsorbed amount for each month, but not exceeding five per centum of the net tax payable after deducting allowable input credit from the output tax payable by such person;
(B)
commencing on or after January 1, 2012, not exceeding a sum equivalent to ten per centum of the unabsorbed amount for each month but not exceeding the net tax payable after deducting allowable input credit from the output tax by such person;”;
by the repeal of the first proviso to that subsection and the substitution therefor of the following:-
“Provided that, in the case of a registered person –
who as at December 31, 2010, has an unabsorbed input credit, but from and after
January 1, 2011, such person has no taxable supplies liable to tax under the provisions of this Act; or
(B)
where in respect of each month with effect from January 1, 2012, the actual set off of the unabsorbed input credit of such person, not exceeding ten per centum of the unabsorbed input credit as at December
Act, No. 7 of 2012 31, 2010, the excess over the amount set off, as is referred to in sub-paragraph (B)
of paragraph (a) of subsection (10), may be set off after ascertaining the amount of the unabsorbed input credit in the folowing manner:–
for any taxable period commencing on or after January 1, 2011 but prior to January 1, 2012, in the manner provided for in either paragraph (a), paragraph (b), paragraph (c) or (d), as the case may be-
in the case of a registered person who is an operator of a telecommunication services licensed under section 17 of the Sri Lanka Telecommunication
Act, No. 25 of 1991, the set off may be made as against the sum payable by him as Telecommunication
Levy payable under the
Telecommunication Levy Act, No. 21
of 2011;
in the case of a registered person who is liable to pay income tax, the set off may be made as against the sum payable by such person as income tax after January 1, 2011;
in the case of a person to whom the provisions of either paragraph (a) or (b) above does not apply, the set off shall be made against the sum payable after January 1, 2011, by such person as tax under any written law for the time being in force,
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administered by the Commissioner
- General;
in the case of a person to whom the provisions of either paragraph (a), (b), or (c) above does not apply, the set off may be considered against the tax payable at the point of entry into the country, by the Director-General of
Customs after July 13, 2011 with the approval of the Commissioner-General after considering the facts of the case;
for any taxable period commencing on or after January 1, 2012, against the tax payable in the manner provided for in either paragraph (a), paragraph (b) or paragraph (c) below, as the case may be:-
in the case of a registered person who is an operator of a telecommunication services licensed under section 17 of the
Sri Lanka Telecommunication
Act, No. 25 of 1991, the set off may be made as against the sum payable by him as
Telecommunication
Levy payable under the
Telecommunication Levy Act,
No. 21 of 2011; or
in the case of a registered person who is liable to pay any tax administered by the
Commissioner - General of Inland
Revenue, the set off may be made against the sum payable after
January 1, 2012, by such person as tax under any written law for the time being in force,
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administered by the Commissioner
General; and
in the case of a registered person to whom the provisions under paragraph (a) and (b) above do not apply, the set off may be considered against the tax payable at the point of entry into the country, by the Director-General of Customs after January 1, 2012
with the approval of the
Commissioner-General after considering the facts of the case.
The set off for each month, against the tax payable in terms of this subsection–
where such set off is applicable to any taxable period from January 1, 2011 but prior to January 1, 2012 shall not exceed ten per centum of the unabsorbed input credit as at December 31, 2010 or five per centum of the relevant tax liability, which ever is less;
where such set off is applicable to any taxable period commerncing on or after
January 1, 2011 shall not exceed ten per centum of the unabsorbed input credit as at December 31, 2010 or the net unabsorbed balance as at December 31,
2011 after setting off the tax payable during the period of twelve months from the total unabsorbed balance as at
December 31, 2010, which ever is less.”.