50.
| (1) Every person who makes any payment in pursuance of a contract to which he is a party or on behalf of any other person who is a party to a contract shall, whether or not such contract was entered into before the coming into operation of this Act, deduct from such payment turnover tax which shall be a percentage of such payment at a rate to be prescribed 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 turnover tax, if any, payable by him under this Act: |
|
| (2) Any person who deducts turnover 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; |
|
| | (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; |
| (ii) the gross amount of such payment; |
| (iii) the rate and amount 'of tax so deducted; and |
| (iv) the net amount actually paid. |
|
|
|
| (3) Where the turnover of a person includes a sum from which -turnover 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. |
|
| (4) For the purposes of this section-
| | " contract" means
| | | (i) any contract in respect of construction work of whatever nature; |
| (ii) any contract for the supply of goods or services in respect of any contract specified in paragraph (i) ; or |
| (iii) any sub-contract in respect of any contract specified in paragraph (i) or (ii). |
|
|
|
| (5) Any person who fails to deduct turnover tax in terms of subsection (1) or fails to remit under subsection (2) any turnover tax to the Commissioner-General shall be deemed to be in default and the provisions of this Act relating to recovery of turnover tax shall accordingly apply to any such default. |
|
| (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 turnover 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. |
|
| (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 recipient of the payments made in respect of such contracts by such person is one and the same person or his agent, the sum paid or payable shall be aggregated for the purposes of subsection (1). |
|
|
Sri Lanka Consolidated Acts