9. Section 25c of the principal enactment is hereby amended by the addition at the end of that section of the following new subsections :-
| "(4) Notwithstanding anything contained in subsection (1) any person to whom this Chapter applies, may in writing communicate to the Commissioner-General, his intention to calculate subject to the provisions of subsection (5), the tax to which he is liable in respect of any month commencing on or after July 1. 2003. The provisions of subsection (5) shall however be applicable for the period subsequent to the communication in writing to the Commissioner -General which communication shall not be revocable. |
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| (5) For the purpose of calculating the tax, the value addition attributable to-
| | (a) exempt supplies, other than the exempt supplies under item (xi) of the First Schedule but taxable under this Chapter ; | | |
| | (b) zero rated supplies ; | | |
| | (c) taxable supplies on which tax has been paid or is payable in terms of this Act, other than the value addition in relation to supplies taxable under this Chapter; | | |
| | (d) the profit or income on interest arising or accrued from inter company transactions of a group of companies relating to any loan, advance or credit, other than any profit or income arising to a company in that group which is a "specified institution" within the meaning of this Chapter or a person not registered with the Central Bank of Sri Lanka, but providing services similar to the services provided by a finance company ; | | |
| | (e) the profit or income on interest arising or accrued to any approved provident fund including the Employees Trust Fund or a Pension Fund or any thrift, savings or building society or welfare fund to which contributions are made by employees only or any approved gratuity fund, or the interest income (not being profits from a business) arising or accruing to any person other than a "specified institution" within the meaning of this Chapter or a person not registered with the Central Bank of Sri Lanka, but providing services similar to the services provided by a finance company ; | | |
| | (f) the dividend income arising to any person, other than such income arising to any "specified institution" within the meaning of this Chapter or to a person not registered with the Central Bank of Sri Lanka, but providing services similar to the services provided by a finance company ; | | |
| | (g)
| | | (i) during any taxable period commencing on or after July 1, 2002 and ending prior to January 1, 2004, the profit or income arising to any person from the sale of company shares owned by such person or to any person who is instrumental in the purchase and sale of such shares by other persons, other than such profits and income arising to any "specified institution" within the meaning of this Chapter or a person not registered with the Central Bank of Sri Lanka, but providing services similar to such services provided by a finance company ; |
| (ii) for any taxable period commencing on or after January 1, 2004 the profits or income arising to any person from the sale of shares in any company owned by such person or to any person who is instrumental in the purchase and sale of such shares by persons other than stockbrokers, other than profits and income arising to any "specified institution" within the meaning of this Chapter or a person not registered with the Central Bank of Sri Lanka, but providing services similar to such services provided by a finance company ; |
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| | (h) the profits or income from the exchange of currency other than such profits or income arising or accruing to any person primarily engaged in the business of exchange of currency or any "specified institution" within the meaning of this Chapter or a person not registered with the Central Bank of Sri Lanka, but providing services similar to such services provided by a finance company, | | |
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| (6) Notwithstanding the provisions of subsection (2) of Section 25A, no tax shall be charged from any person liable to such tax, if the value addition calculated in accordance with the provisions of this section does not in respect of any calendar month exceed seventy five thousand rupees. |
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| (7) For the purposes of this section "group of companies" means a parent company and all its subsidiaries where the parent company which has one or more subsidiaries, and such subsidiaries are controlled by the parent company either by controlling the composition of the board of directors of such subsidiary or by holding more than half in nominal value of the equity share capital of such subsidiary. |
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| (8) Notwithstanding the provisions of subsection (3) the amount of tax payable for each month commencing on or after January 1,2004 shall be fifteen per centum of the value addition specified in subsection (1).". |
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Sri Lanka Consolidated Acts