6. The following new sections are hereby inserted immediately after section 21 B of the principal enactment and shall have effect as sections 21C. 21D, 21E, 21F and 21G, of that enactment:-
| 21c.
| | (1) The profits and income within the meaning of paragraph (a) of section 3 (other , than any profits and income from the sale of capital assets) of any company from any undertakings. specified undertaking referred to in subsection(2), shall be exempt from income tax, for a period of live years, reckoned from the year of assessment in which the undertaking commences to make profits or any year of assessment not later than two years reckoned from the date of commencement of commercial operations, whichever is earlier. | | |
| | (2) For the purposes of subsection (1) "specified undertaking" in relation to a company means an undertaking carried on by such company on or alter April 1,2002. and which is engaged in infrastructure development for the generation of power, tourism, recreation, ware housing and cold storage, garbage collection or disposal, construction of houses or construction of hospitals, and the total amount invested within one year from the commencement of the undertaking is not less than rupees ten million hut not exceeding rupees fifty million. | | |
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| 21D. The profits and income within the meaning of paragraph (a) of section 3 (other than any profits and income from the sale of company capital assets) of any company which research and commences a new undertaking which is engaged in research and development with an investment of not less than rupees two million made within one year from the commencement of such undertaking, shall be exempt from income tax for a period of five years, reckoned from the year of assessment in which the undertaking commences to make profits or any year of assessment not later than two years, reckoned from the date on which the undertaking commences to carry on of commercial operations which ever is earlier. |
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| 21E.
| | (1) The profits and income within the meaning of paragraph (a) of section 3 (other than any profits from the sale of capital assets) of a company which acquires a non- performing or underperforming business enterprise engaged under in a specific area of activity, to rehabilitate such enterprise subject to terms approved by the Minister and subject to adequate provision being made to meet the statutory liabilities outstanding at the time of acquisition of such enterprise, shall be exempt from income tax for a period of three years, where the acquisition has been completed and commercial operations have commenced on or before March 31,2004. | | |
| | (2) The period of three years referred to in subsection (1), shall be reckoned from the year of assessment in which the acquired enterprise commences to make profits or any year of assessment, not later than two years reckoned from the dale on which each enterprise commences commercial operations which ever is earlier. | | |
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| 21F
| | (1) The profits and income within the meaning of paragraph (a) of section 3. (other than any profits from the sale of capital assets)company engaged in of any company which has an undertaking which non-traditional is the manufacture and export of products for and undertakes expansion exports which of its manufacturing undertaking of such undertakes expansion products with an investment of not less than rupees ten million but not exceeding rupees one hundred million, shall be exempt from income tax for a period of two years where the full investment has been made on or before March 31, 2004. in respect of such expansion. | | |
| | (2) The period of two years referred to in subsection (1), shall be reckoned where the undertaking, which engages in expansion-
| | | (a) is qualified for an exemption from income tax on the export of non-traditional products, from the dale on which such exemption period is due to expire ; or |
| (b) other than an undertaking referred to in paragraph (a) from the dale on which each undertaking commences to any on commercial operations. |
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| 21G.
| | (1) The profits and income attributable to the expansion of any company, which is engaged in the manufacture and income from or production of traditional exports or non- exportable goods and which undertakes the expansion of any undertaking for the production engaged in thereof manufacture of such traditional export or non- or production exportable goods with an investment of not less of traditional than rupees ten million, shall be exempt from exports or income tax for a period of two years where the ,, full investment in relation to such expansion has exportable ' goods. been made on or before March 31. 2004. | | |
| | (2) The period of two years referred to in subsection (1) shall be reckoned from the year of assessment in which the expansion of such undertaking commences to make profits or from April 1, 2006, whichever is earlier. | | |
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Sri Lanka Consolidated Acts