58. Such part of the profits and income within the meaning of paragraph (a) of section 3, of any garment manufacturer approved by the Textile Quota Board, as consists of profits and income from the supply to any exporter registered with the Textile Quota Board, of the services of sewing any garment, assembly of any garment or any other service which results in the improvement of the value of any garment, made from fabric supplied to such manufacturer by such exporter and exported by such exporter either directly or through any export trading house which has entered into an agreement with the Board of Investment of Sri Lanka under section 17 of the Board of Investment of Sri Lanka Law No. 4 of 1978 shall, notwithstanding anything to the contrary in any other provision of this Act, be chargeable with income tax at the appropriate rate specified in the Fifth schedule to this Act, if-
| (a) such supply is covered by a letter of credit opened in a bank in Sri Lanka on a back to back basis against an international letter of credit for the remittance to Sri Lanka of the foreign exchange value of the exports related to such supply, or |
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| (b)
| | (i) the payment of the consideration for such supply is made in foreign currency by means of a draft or telegraphic transfer made in favour of such manufacturer by such exporter ; and | | |
| | (ii) such other documentary evidence as is required by the Commissioner-General to satisfy himself that the garments relating to such supply have in fact been exported, is adduced. | | |
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For the purposes of this section "Textile Quota Board" means the Textile Quota Board established under the Textile Quota Board Act, No. 33 of 1996. |
Sri Lanka Consolidated Acts