Value Added Tax (Amendment) Act (No. 6 of 2005)

Sri Lanka Consolidated Acts

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Value Added Tax (Amendment) Act (No. 6 of 2005) - Sect 2

Amendment of section 2 of Act, No. 14 of 2002

2. Section 2 of the Value Added Tax Act, No. 14 of 2002 (hereinafter referred to as the "principal enactment") is hereby amended as follows :-

(1) in subsection (1) of that section-

	(a) by the substitution for the words "as the case may be-" of the words "as the case may be, subject to the provisions of section 2A, at the following rates:

(b) in subparagraph (ii) of that subsection-

(1) by the substitution for the words "for any taxable period commencing on or after January 1, 2004" of the words "for any taxable period commencing on or after January 1, 2004 and ending on or before-

(2) by the substitution for the words "at zero per centum" of the words "at zero per centum;";

(iii) for the period commencing on November 19, 2004 and ending on or before December 31, 2004 and for any taxable period commencing on or after January 1, 2005 at the rate of five per centum (Basic Rate) (of which tax fraction is 1/21) on the value of such goods supplied or imported as referred to in the Third Schedule other than such goods chargeable with tax at zero per centum ;

(iv) for any taxable period commencing on or after January 1, 2005 at the rate of eighteen per centum (Luxury Rate) (of which Tax Fraction is 9/59, on the value of such goods or services supplied or goods imported as referred to in the Fourth Schedule other than such goods or services chargeable with tax at zero per centum ; and

(v) for any taxable period commencing on or after January 1, 2005 at the rate of fifteen per centum (Standard rate) (of which the Tax Fraction is 3/23) on the value of such goods or services supplied or goods imported other than in respect of the following:-

(2) in subsection (2) of that section-

	(a) in paragraph (a) of that subsection by the substitution for the words "on any tea supplied by" of the words "on any tea supplied prior to January 1, 2005 by ";

	(b) in paragraph (b) of that subsection by the substitution for the word "supplies." of the words "supplies;";

"(c)

(d) on the supply with the approval of the Export Development Board, established by the Sri Lanka Export Development Act, No. 40 of 1979 with the concurrence of the Ministry of the Minister in charge of the subject of Finance of any goods manufactured in Sri Lanka by such suppliers to be utilized for the purpose of manufacture of goods other than the goods referred to in paragraph (c) of this subsection by manufactures who are registered with the Export Development Board as exporters, until such time as the activities of such manufacturers are monitored by the Export Development Board with the approval of the Ministry of the Minister in charge of the subject of Finance and the Export Development Board, furnishes the reconciliation on the disposal of such goods on; a quarterly basis as stipulated by the Commissioner-General to the satisfaction of the Commissioner-General, that such furnished goods are in fact exported by the recipient of the supplies.

(3) in subsection (3) of that section -

	(a) in paragraph (e) thereof, by the substitution for the words "on or before December 31, 2002:" of the following words "on or before December 31, 2002;"; and

(b) by the addition immediately after paragraph (e) of that subsection of the following new paragraph:-

(f) any fabric or accessories imported by any person for the purpose of manufacture of garments for export, who has registered with the Textile Quota Board established under the Textile Quota Board Act, No.33 of 1996, with the approval of the Textile Quota Board and under the supervision of the Director-General of Customs or the Board of Investment as the case may be."

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