Inland Revenue Act 2017 · පනවන ලද පරිදි · Part I
31. Annuities, instalment sales and finance leases
නිල ඉංග්රීසි පරිවර්තනය. සිංහල පාඨය බලපවත්වයි. නිල Sinhala පාඨය විවෘත කරන්න, documents.gov.lk හි නිල PDF
නිල පරිවර්තනයවෙනස් නොකළ පාඨය, Department of Government Printing වෙතින්
Payments made by a person under a finance lease or in acquiring an asset under an instalment sale shall be treated as interest and a repayment of capital under a loan made by the lessor or seller to the lessee or buyer, as the case requires.
Payments made to a person under an annuity shall be treated as interest and a repayment of capital under a loan made by the person to the payer of the annuity.
The interest and repayment of capital under subsections (1) and (2) shall be calculated as if the loan were a blended loan with interest compounded six-monthly or such other period as the Commissioner-General may specify.
Section 49 provides further provisions regarding transfers under finance leases and instalment sales.
The Commissioner-General may specify any other forms of financing that relates to interest substitutes.
For the purposes of this section –
“annuity” does not include an amount payable –
under an order of court by way of payment of alimony or maintenance; or
to a spouse under a duly executed deed of separation;
“blended loan” means a loan –
under which payments by the borrower represent in part a payment of interest and in part a repayment of capital;
where the interest part is calculated on capital outstanding at the time of each payment; and
where the rate of interest is uniform over the term of the loan;
“finance lease” means a lease where –
the lease agreement provides for transfer of ownership following the end of the lease term or the lessee has an option to acquire the asset after expiry of the lease term for a fixed or presupposed price;
the lease term exceeds seventy five per cent of the useful life of the asset;
the estimated market value of the asset after expiry of the lease term is less than twenty per cent of its market value at the start of the lease;
in the case of a lease that commences before the last twenty five percent of the useful life of the asset, the present value of the minimum lease payments equals or exceeds ninety per cent of the market value of the asset at the start of the lease term; or
the asset is custom-made for the lessee and after expiry of the lease term the asset will not be of practical use to any person other than the lessee;
“instalment sale” excludes a sale that provides for commercial periodic interest payable on sales proceeds outstanding; and
“lease term” includes an additional period for which the lessee has an option to renew a lease.