14. Section 23 of the principal enactment as last amended by Act, No. 19 of 2003, is hereby further amended as follows
| (1) in subsection (1) of that section-
| | (a) by the substitution in paragraph (a) of that subsection, for the words "by such person;", of the words and figures "by such person, for any year of assessment commencing on or before April 1, 2003. | | |
| | (b) by the substitution in paragraph (b) of that subsection, for the words "an allowance for depreciation", of the words and figures "for any year of assessment commencing on or before April 1, 2003. an allowance for depreciation'; | | |
| | (c) by the insertion immediately after paragraph (b) of that subsection, of the following new paragraph :-"
| | | "(bb) an allowance for depreciation by wear and tear of the following assets acquired, constructed or assembled and arising out of their use on or after April 1, 2004. by such person in any trade, business , profession or vocation carried on by him "
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| | (d) by the substitution in paragraph (cc) of that subsection , for the words and figures "on or after April 1, 2002", of the words and figures "on or after April 1, 2002 but on or before March 31, 2004"; | | |
| | (e) by the substitution in paragraph (d) of that subsection, for the words '"acquisition of such computer software:", of the words and figures "acquisition of such computer software on or before March 31, 2004:"; | | |
| | (f) by the insertion immediately after the proviso to paragraph (f) of that subsection, the following new proviso ." | | |
| | (g) by the substitution :"
| | | (i) in paragraph (g) of that subsection, for the words "sum equal to the bad debts'", of the words "sum equal to the bad debts representing the supply of goods or services by such person on credit"; and |
| (ii) in the proviso to paragraph (g) of that subsection, by the substitution for the words "'vocation or employment ;"of the words "'vocation or employment and for the purpose of this proviso, sums recovered shall be deemed to include any reduction as at the last date of such period in any estimated amount of a doubtful debt previously allowed as a deduction;''; |
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| | (h) by the substitution for sub-paragraph (i) of the proviso to paragraph (m) of that subsection, of the following sub-paragraphs : -
| | | " (ia) in respect of expenses incurred in relation to a vehicle used partly for the purposes of his trade, business, profession or vocation and partly for the domestic or private purposes of an executive officer being employed by him or a non-executive director of such organization, unless the value of the benefit as specified under the proviso to paragraph (b) of subsection (2) of section 4 of this Act has been included in the remuneration of such officer , for the purposes of deduction of income tax under Chapter XIV of this Act: |
| (ib) in respect of expenses incurred in relation to a vehicle, where more than one vehicle is provided to any employee or such person or to any non-executive director or to any other individual who is not an employee but rendering services in the trade, business profession or occupation carried on by such person if such vehicle is not the first vehicle provided to such employee, or non -executive director or such other individual, as the case may be; |
| (ic) in respect of expenses incurred in relation to a vehicle where such vehicle is provided to any other person who is not an employee of such person and who does not render any services to the trade, business , profession or vocation carried on by such person. |
| (id) in respect of expenses incurred in relation to the reimbursement of any expenditure on a vehicle belonging to an employee of such person who has been allowed by the employer to claim such expenses, unless the value of benefit of using such vehicle for non-business purposes by such employee as determined by the Commissioner General has been included in the remuneration of such employee for the purposes of deduction of income tax under Chapter XIV. or in the opinion of the Commissioner General such amount that is reimbursed represents only expense on allowable traveling expenses in relation to the trade business, profession or vocation carried on by such employer, |
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| | (i) by the substitution in paragraph (r) of that subsection for the words "of the lump sum payment', of the words "of the lump sum payment, which not being an advance payment", ; and | | |
| | "(j) by the substitution in paragraph (s) of that subsection for the words "sum paid, by a", of the words" sum paid on or before March 31, 2004, by a". | | |
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| (2) in subsection (3) of that section by the substitution for the words ''Where any person" and of the words "carried on or exercised by him", of the words '"Subject to the provisions of subsection (3A), where any person", and of the words "carried on or exercised by him. whether such profits and income are fully or partly exempt from income tax," respectively. |
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| (3) by the insertion immediately after subsection (3) of that section, of the following new subsection :" |
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| "(3a) Where a disposal takes place under the provisions of subsection (3) on or after April 01, 2004. the total proceeds of the disposal shall be taken into account in calculating such receipt or expenditure, as the case may be. from such trade, business, profession or vocation.'"; |
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| (4) in subsection (5) of that section by the substitution for the words "paragraph (a) or paragraph (b) of the words "paragraph (a) or paragraph (b) or paragraph (bb)', ; |
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| (5) in subsection (7) of that section "
| | (a) by the substitution in sub-paragraph (i) of paragraph (a) of that subsection, for the words "paragraph (a), paragraph (b), of the words "paragraph (a), paragraph (b), paragraph (bb)"; | | |
| | (b) by the substitution in paragraph (b) of that subsection, for the words "utensils, articles or equipment", of the words "utensils , articles or equipment or any bridge, railway, reservoir electricity or water distribution line:, toll roads"; | | |
| | (c) by the substitution in sup-paragraph (iii) of paragraph (f) for the words "to a company referred to in paragraph (XY) of subsection (1) of section 14,", of the words "to a company which is incorporated mainly for the acquisition of the assets of that business.''; and | | |
| | (d) by the insertion immediately after sub- paragraph (iv) of paragraph (f). of the following new sub-paragraph :"-
| | | "(v) where any asset used in the business of leasing as part of the leasing stock is disposed of subsequently, either by transferring such asset out of the leasing stock or by transferring such stock to the lessee, the market value as at the time of such transfer of such asset shall be deemed to be a receipt from such trade or business of the lessor, unless such lessor proves to the satisfaction of the assessor that all receipts under such lease agreement, including total rentals receivable or received , as the case may be. advance payments received, early settlement fees and all other similar receipts have been considered as taxable receipts in computing profits or income from such business ; |
| (vi) where any person has obtained an asset under a lease agreement and the relevant lease rentals have been allowed to such person as expenditure incurred in any trade, business, profession or vocation either fully or partly, the receipts from disposal of such asset, less any cost of acquisition other man lease rentals paid on such asset by such person after acquiring it directly or through a nominee, shall be treated as a receipt from such trade, business , profession or vocation of such lessee ; |
| (vii) where any lessee has acquired any asset used by him in any trade, business, profession or vocation under a lease agreement, such acquisition shall not be considered as an acquisition which qualifies for any depreciation allowance under this section, and such asset shall be treated as an asset on which depreciation has been granted to such lessee to the extent of the repayment of the capital value of such asset under such lease agreement by such lessee.' |
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Sri Lanka Consolidated Acts