5.
| (1) Every bank shall-
| | (a) at the time at which it opens any letter of credit, in any month in a relevant quarter, on an application in that behalf by any person to whom this Act applies, being an importer of an article, collect from such person, an amount equal to one per centum of the value of that letter of credit; and | | |
| | (b) remit the amount so collected to the Commissioner-General, on or before the fifteenth day of the month immediately succeeding the month in which the amount was collected together with a declaration in such from and containing such particulars as may be specified by the Commissioner-General. | | |
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| (2) Every bank which collects any amount in accordance with the provisions of subsection (1), shall make an endorsement on the import invoice relating to the letter of credit with reference to which such amount was collected specifying the amount so collected. |
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| (3) Any amount collected by any bank from any person to whom this Act applies, in accordance with the provisions of subsection (1), shall be deemed to have been paid to the Commissioner-General by such person on the date on which such bank collected such amount, and shall be set off against the levy payable by such person for the relevant quarter in which such, amount was deemed to have been paid by him. |
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| (4) Notwithstanding anything in any other law, any amount collected by any bank under the preceding provisions of this section and held by such bank for remittance to the Commissioner-General shall be deemed not to be such property of such bank as is liable to execution or administration in the event of the bankruptcy, liquidation or dissolution of such bank or to assignment for the benefit of creditors and such amount shall remain apart from, and form no part of, the estate in bankruptcy, liquidation or assignment of such bank. |
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| (5) Where any bank fails to collect, from any person to whom this Act applies, any amount required to be collected From such person under this section, or where any bank has collected such amount and has not remitted the amount so collected to the Commissioner-General on or before the fifteenth day of the month immediately succeeding the month in which such amount was collected, such bank shall be liable to the amount it was required to collect under the provisions of this section but has not collected, or as the case may be, for the amount or part thereof collected and not remitted to the Commissioner-General and such amount not collected or collected and not remitted, as the case may be, shall be deemed to be in default from the day following the day on which such amount was required to have been remitted to the Commissioner-General and such bank shall be deemed to be a defaulter, with effect from such date, and such amount may be recovered from such bank in the manner provided in this Act |
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Sri Lanka Consolidated Acts