5. The following new sections are hereby inserted immediately after section 6A, and shall have effect as sections 6B, 6C, 6D and 6E respectively, of the principal enactment: -
| 6B.
| | (1) This section shall apply to any company incorporated on or after November 15, 1977, and approved by the Minister, which commenced to carry on. on or after that date, and is engaged only in carrying on, one or more of the undertakings hereinafter specified, namely -
| | | (a) an undertaking for off-shore or deep-sea fishing, |
| (b) an undertaking for off-shore or deep-sea fishing and the processing of the product of any such activity, |
| (c) an undertaking for animal husbandry, or |
| (d) an undertaking for cultivating land with plants, palms, trees, bushes or foodstuffs, other than tea, rubber, coconut or paddy and processing the product of such cultivation; |
| (e) an undertaking for cultivating land with plants, palms, trees, bushes or foodstuffs, other than tea, rubber, coconut or paddy: |
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| | (2) The profits and income of any company referred to in subsection (1) from such undertaking or undertakings as is or are referred to in that subsection, being profits and income of that company within the meaning of section 3 (1) (a) (other than any profit from the sale of capital assets) shall be exempt from income tax for the period commencing from the date of incorporation of the company and ending on March 31, 1983 | | |
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| 6c.
| | (1) This section shall apply to any undertaking commenced on or after November 15, 1977, and approved by the Minister, for the production or manufacture in Sri Lanka of goods or commodities where the Assessor is satisfied that-
| | | (a) it is not an undertaking for the milling of paddy; and |
| (b) it was not an undertaking which was formed by the splitting up, reconstruction or acquisition of any business which was previously in existence; and |
| (c) the place where the production of manufacture is carried on is located outside the administrative limits of a Municipality, within the meaning of the Municipal Councils Ordinance. |
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| | (2) The profits and income of any undertaking referred to in subsection (1), being profits and income of that undertaking within the meaning of section 3 (1) (a) (other than any profits and income from the sale of capital assets of that undertaking) shall, subject to the provisions of subsection (3) and subsection (4), be exempt from income tax for the period commencing from the date of commencement of the undertaking and ending on March 31, 1983. | | |
| | (3) Where at any time during the year preceding any year of assessment commencing on or after April 1, 1978, but-prior to April 1, 1984, the capital of any such undertaking exceeds five hundred thousand rupees, the profits and income of that undertaking arising in such preceding year shall not be exempt from income tax for that year of assessment. | | |
| | (4) For any year of assessment the exemption from income tax of the profits and income of that undertaking for the year preceding that year of assessment shall not apply to such part of such profits and income as exceed-
| | | (i) one hundred thousand rupees where that undertaking was in existence throughout such preceding year, and |
| (ii) such sum as bears to one hundred thousand rupees the same proportion as the number of days in such preceding year during which such undertaking was in existence bears to the number of days in that year, where such undertaking was in existence for only a part of such preceding year. |
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| | (5) In this section, " capital, " in relation to an undertaking means the aggregate of
| | | (a) the cost of any land, building, plant , machinery and fixtures of that undertaking, and |
| (b) the value of the other assets of that undertaking after deducting there from any profits of that undertaking retained for use in that undertaking. |
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| 6D.
| | (1) Subject as hereinafter provided, where any person who carries on an undertaking approved by the Commissioner for National Housing for the construction and sale of houses sells any house or flat, the construction of which was commenced by such person on or after January 1, 1977, such sale being the first sale of that house or flat,
| | | (a) the entirety of the profits and income arising from such sale shall be exempt from income tax, if the floor area of such house or flat does not exceed five hundred square feet, |
| (b) seventy-five per centum of the profits and income arising from such sale shall be exempt from income tax, if the floor area of such house or flat exceeds five hundred square feet but does not exceed one thousand two hundred and fifty square feet, and |
| (c) fifty per centum of the profits and income arising from such sale shall be exempt from income tax, if the floor area of such house or flat exceeds one thousand two hundred and fifty square feet but does not exceed two thousand square feet: |
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| | (2) Where any dividend paid by a company to its shareholders or any part of such dividend is out of the profits and income which are exempt from income tax, under subsection (1), then, such dividend or part thereof shall be exempt from income tax, and the provisions of sections 25 (1) (b) and 27 (1) shall not apply to such dividend or part thereof. | | |
| | (3) Every person who issues a warrant, cheque or other order drawn or made in payment of any dividend referred to in subsection (2), shall annex thereto a statement in writing, specifying the amount of the profits and income exempt from income tax under subsection (1) which is included in that dividend. | | |
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| 6E.
| | (1) This section shall apply to any undertaking commenced on or after November 15, 1977, and approved by the Minister., for the milling of paddy. | | |
| | (2) The profits and income of any undertaking referred to in subsection (1), being profits and income of that undertaking with the meaning of section 3(1) (a) (other than any profits and income from the sale of capital assets of that undertaking) shall , subject to the provisions of subsection (3), be exempt from income tax for the period commencing from the date of commencement of the undertaking and ending on March 31, 1983, if the Assessor is satisfied that it was not an under taking which was formed by the split ting up, reconstruction, or acquisition of any business which was previously in existence. | | |
| | (3) The Minister in charge of the subject of Agriculture and Lands may, in respect of an undertaking referred to in subsection (1), specify-
| | | (i) the quantity of rice that shall be supplied by that undertaking to the Paddy Marketing Board established under the Paddy Marketing Board Act, No. 14 of 1971, or to any authorized purchaser within the meaning of that Act, and |
| (ii) the quality of the rice that shall be so supplied, |
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| | (4) Where in respect of any year on assessment commencing on for after April 1, 1978, but prior to April 1, 1984, any undertaking referred to in subsection (1) fails to furnish to the Commissioner-General a certificate signed by the Minister in charge of the subject of Agriculture and Lands or by a person authorized by such Minister to the effect that it has complied, in the year preceding that year of assessment, with the conditions specified by such Minister in respect of such undertaking under subsection (3), the profits and income of that undertaking arising in such preceding year shall not be exempt from income tax for that year of assessment.'. | | |
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Sri Lanka Consolidated Acts