60.
| (1) Every person who makes any payment in Deduction of tax pursuance of a contract to which he is a party or on behalf of from payments-any other person who is a party to a contact shall, whether or not such contract was entered into prior to the appointed date, deduct from such payment, tax which shall be a percentage of such payment at such rate as may be determined by the Minister by Order published in the Gazette and the amount of tax so deducted shall be a debt due from such person to the Republic and shall be recoverable forthwith or may be assessed and charged upon such person in addition to any tax, if any, payable by him under this Act: |
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| (2) Any person who deducts tax in accordance with the provisions of subsection (1) shall-
| | (a) issue to the person from whose payment the deduction is made a statement showing-
| | | (i) the gross amount of such payment; |
| (ii) the rate and amount of tax so deducted; and |
| (iii) the net amount actually paid ; |
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| | (b) remit within seven days of making such deduction the sum so deducted to the Commissioner-General together with a statement showing-
| | | (i) the name and address of the person to whom the payment was made and the registration number of such person if any; |
| (ii) the gross amount of such payment; |
| (iii) the rate and amount of tax so deducted ; |
| (iv) the net amount actually paid; and |
| (v) the name and address of the person who made the payment and the registration number of such person. |
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| (3) Where the taxable supplies of a person include a sum from which tax has been deducted in accordance with subsection (1) he shall be entitled on production of a statement relating to such sum issued in accordance with subsection, (2) to a set off against the tax payable by him, of the amount shown on such statement as the amount of tax deducted. |
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| (4) For the purposes of this section "contract" means-
| | (i) any contract in respect of construction work or services of whatever nature not being a contract of employment; | | |
| | (ii) any contract for the supply of goods or services in respect of any contract specified in paragraph (i); | | |
| | (iii) any sub-contract in respect of any contract specified in paragraph (i) or (ii); | | |
| | (iv) any contract for the provision of services including a contract for the provision of services as an entertainer or artiste other than a contract of employment; or | | |
| | (v) any contract for the supply of cinematograph films. | | |
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| (5) Any person who fails to deduct tax in terms of subsection (1) or fails to remit under subsection (2) any tax to the Commissioner-General shall be deemed to be in default and the provisions of this Act relating to recovery of tax shall accordingly apply on any such default. |
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| (6) Any person who has made any deduction under subsection (1) or any remittance in pursuance of subsection (2) shall be deemed to have acted under the authority of the person by whom the tax was payable and of all other persons concerned, and is hereby indemnified in respect of such deduction or remittance, as the case may be, against all proceedings, civil or criminal, notwithstanding the provisions of any written law, contract or agreement. |
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| (7) Where any person has entered into two or more contracts and the Assessor, having regard to the nature and the parties to such contracts, is of opinion that the persons to whom the payments were made in respect of such contracts is one and the same person or his agent, the sum paid or payable shall be aggregated for the purposes of subsection (1). |
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Sri Lanka Consolidated Acts