4. Amendment of section 7 of the principal enactment

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

Section 7 of the principal enactment is hereby amended in subsection (1) of that section as follows:-

(1)

by the substitution in paragraph (a), for the words

“where the supplier of such goods has exported such goods;” of the words “where the supplier of such goods has exported such goods for which payment is received in foreign currency through a bank in Sri Lanka licenced under the Banking Act,

No. 30 of 1988 within a period of six months from the end of the taxable period of which such exportation has taken place;”;

(2)

in paragraph (b) of that subsection–

(a)

by the substitution in sub-paragraph (i) for the words “immovable property outside Sri

Lanka” of the words “immovable property outside Sri Lanka, for which payment is received in foreign currency through a bank in Sri Lanka licenced under the Banking

Act, No. 30 of 1988 within a period of six months from the end of the taxable period of which supply of such service is provided;

(b)

by the substitution in sub-paragraph (iia) for the words “re-export under entre-port trade:”

of the words and figures “re-export under entre-port trade, for which payment is received in foreign currency through a bank in Sri Lanka licenced under the Banking Act,

No. 30 of 1988 within a period of six months from the end of the taxable period of which supply of such service is provided;

(c)

by the substitution in sub-paragraph (iii)

for the words “such right if for use outside

Sri Lanka” of the words “such right is for use outside Sri Lanka, for which payment is received in foreign currency through a bank in Sri Lanka licenced under the Banking

Act, No. 30 of 1988 within a period of six months from the end of the taxable period of which supply of such service is provided;

(d)

by the substitution in sub-paragraph (v) for the words “payment is received in foreign currency through a bank, if ” of the words and figures “payment is received in foreign currency through a bank in Sri Lanka licenced under the Banking Act, No. 30 of 1988 within a period of six months from the end of the taxable period of which supply of such service is provided, if;

(e)

by the substitution in sub-paragraph (vi) for the words “payment is received in foreign currency, through a bank” of the words and figures “payment is received in foreign currency through a bank in Sri Lanka licenced under the Banking Act, No. 30 of 1988 within a period of six months from the end of the taxable period of which supply of such service is provided;

(f)

by the substitution in sub-paragraph (vii)

for the words “payment for such service is received in foreign currency, through a bank in Sri Lanka in so far” of the words and figures “payment for such service is recieved in foreign currency through a bank in Sri Lanka licenced under the Banking

Act, No. 30 of 1988 within a period of six months from the end of the taxable period of which supply of such service is provided, in so far;”;

(3)

by the substitution in paragraph (c), for the words “foreign currency from outside Sri

Lanka through a bank in Sri Lanka” of the words and figures “foreign currency from outside Sri Lanka through a bank in

Sri Lanka licenced under the Banking Act,

No. 30 of 1988 within a period of six months from the end of the taxable period of which supply of such service is provided”;

(4)

by the insertion immediately after subsection (2), of the following:–

“(3) Notwithstanding the payment in respect of supply of goods or services referred to in subsection (1) of section 7 is not received in foreign currency through a bank in Sri Lanka licenced under the Banking Act, No. 30 of 1988

within a period of six months from the end of the taxable period of which such exportation has taken place or supply of such service is provided, as the case may be, where it is proved to the satisfaction of the Commissioner-General that such goods are exported or the services are performed, the rate specified in section 2 shall not apply on such supply of goods or services.”.

Read on from s 5