VAT Guide to Value Added Tax - sri lanka inland revenue ...

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which he has supplied to the garage for the purpose of the repair although he may have obtained tax-invoices in the name of the insurance company from the suppliers of spare parts. - In either case the insurance company is not liable to pay VAT to any person who not being a registered person is not entitle to issue a tax invoice to the insurance company. 24.8 Exemption of Health Care Services Health Care Services provided by Medical Institutions or by professionally qualified persons providing such care are exempted from VAT. • Health Care Services means - Medical services, Public Health Services and related laboratory services relating to patient care including medical consultation and diagnosis and/or prophylactic, therapeutic or surgical treatment for persons. • Medical Institutions means - Institutions which look after patient care and include both private and State run hospitals and dispensaries registered under Medical Ordinance No.26 of 1927, Ayurveda Act No. 31 of 1961 or Homeopathy Act No.7 of 1970. • Professionally qualified person providing health care services means - Persons who are authorized under the Medical Ordinance, (Medical Officers, Medical Specialist and Registered Medical Practitioners) Ayurveda Act or Homeopathy Act to practice as Medical Practitioners, Consultants, or in any other capacity in Medical Care and/or to provide medical treatments to persons suffering form any decease. • The supply of service followed by invoicing should be done either by a medical institution or by a professionally qualified person providing health care. If the professionally qualified person is employed by an institution that institution will not get the benefit of exemption unless it is a registered medical institution. 24.9 Exemption of Financial Services (i) Colombo Stock Exchange • Fees received from the following functions are liable to VAT i. Listing Fees – (i.e the fees charged form each of the listed companies for enjoying the status of a listed company in the stock exchange). ii. Quotation Fees – (i.e the admission fee charged from companies seeking to obtain membership of the stock exchange) iii. Custodian Bank fees – (i.e the fixed fee charged from each of the Custodian Banks registered with the stock exchange for participating in 128
exchange operation and the fee based on the number of trades through each Custodian Bank) iv. Commercial Services - Services such as charges for computer information, providing “data signal”, and remote data link. • Fees or Commission on the following are treated as receipts form exempt supplies. i. Bankers fees – i.e fees payable by brokering firms (member) in order to operate as members of the stock exchange – fixed charge ii. Commission on Brokerage - Share of brokerage commission for transactions through the stock exchange. iii. Fees from clients (Listed companies) – charges received form listed companies based on the number of transactions as a fee for monitoring of depository operations. v. Brokers entrance fees – Entrance fees payable by new firms to obtain a broker license. (ii). Stock Brokering Firms (i.e Members of the Colombo Stock Exchange) The services rendered by stock brokering firms in relation to the issue, allotment or transfer of ownership of any equity security or participatory security can be considered as exempt financial services. However the services rendered by the agents of such brokering firms cannot be considered in the same way and therefore such services are liable to VAT. (iii) (iv) Unit Trusts A unit of a Unit Trust can be considered as participatory security and the issue, allotment or transfer of such participatory security can be exempted under financial services. The exemption may be applicable for the following receipts of the Unit Trusts as well. i. Interest income received from bank deposits, commercial paper, debentures, repurchase agreements and other debt instruments. ii. Capital gains received by way of sale of equity securities and debt securities. Custodian Services This includes holding of customer funds and settlement of brokers on receiving instructions from clients for which settlement function a quarterly fee is levied from the customer. These services are liable to VAT. However, settlement fees collected by banks for services in connection with carrying out of customers 129
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But for the best to the September 0
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Preface The Value Added Tax Act was
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Chapter - 1 Introduction 1.1 Purpos
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However from the point of view of t
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The following test which has been a
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iv. Import of any fabric, yarn, gre
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Chapter - 3 The definitions of conc
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Eg. 1 : If “A” wants to termina
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c. Time of supply in relation to su
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Thus, any trade, business, etc. are
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a business in Sri Lanka and not to
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When the recipient is not a registe
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• There are two types of registra
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(ii) continued without making an ap
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(d) (e) (f) input credit has been c
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4.13 Activity Code Number “Suppli
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the H.S. classification it may be b
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5.8 Payment of tax on Assessments T
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5.11. Collection of VAT on Imports
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6.3 Approval For Deferment Facility
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iv. If an importer declares only pa
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6.6 Deferment on Local Supplies (Te
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7.4 Tax Invoice Tax invoice should
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7.11 Use of tax fraction to compute
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Lower Rate - 10% Goods and services
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Chapter - 9 Calculation of Tax 9.1
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accounted for in respect of all the
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transferred to a taxable activity a
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Eg. If A is an ice-cream vendor who
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(3) In the above case if the regist
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• claim (deduct) only the allowab
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• “Value of Supply” has to be
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VAT chargeable = 900,000 x 20% = 18
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• The Director General of Customs
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10.5.6 Milk - item (iv) • Liquid
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(i) Insurance - xi(i) • Only the
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in Sri Lanka and consumed in Sri La
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Chapter - 11 Refunds 11.1 Unlike in
Page 78 and 79: 11.7 Set off of refunds against fut
Page 80 and 81: • To make an additional assessmen
Page 82 and 83: a genuine taxpayer who does not wis
Page 84 and 85: Penalties Tax payers should comply
Page 86 and 87: 15.3 Keeping of records regarding e
Page 88 and 89: 15.8 Example of a VAT Account VAT A
Page 90 and 91: the trading house or the other pers
Page 92 and 93: 16.4 Concessions available to Expor
Page 94 and 95: v. Importation of services are not
Page 96 and 97: Chapter - 17 Hire Purchase Transact
Page 98 and 99: (a) Under the existing provisions V
Page 100 and 101: y the hire-purchase company to the
Page 102 and 103: Chapter - 18 Leasing & VAT 18.1 Lea
Page 104 and 105: installments. Any VAT not recovered
Page 106 and 107: 18.13 Leasing inputs • Leasing in
Page 108 and 109: 18.15 Leasing Advance Sometimes it
Page 110 and 111: Thus output tax of B on the termina
Page 112 and 113: Chapter - 19 Mortgages 19.1 Mortgag
Page 114 and 115: • Services provided by internatio
Page 116 and 117: Chapter - 21 Some Obligations Under
Page 118 and 119: However an adjusted figure must be
Page 120 and 121: Chapter 23 Construction Contracts 2
Page 122 and 123: Government agencies mentioned above
Page 124 and 125: Chapter - 24 Rulings 24.1 Following
Page 126 and 127: • None of the companies covered b
Page 130 and 131: instructions can be exempted if suc
Page 132 and 133: ii. iii. any other registration tha
Page 134 and 135: i. Membership fees and or subscript
Page 136 and 137: Chapter - 25 Zero Rated Supplies 25
Page 138 and 139: (ii) (iii) (iv) Services directly c
Page 140 and 141: Supply of facilities for crew chang
Page 142 and 143: 4. Yard to Port Transporting contai
Page 144 and 145: Chapter - 26 Travel Trade, Tourism
Page 146 and 147: ii. iii. But “travel insurance“
Page 148 and 149: 26.6 VAT ON MICE Tourism VAT rate a
Page 150 and 151: x. Supply of goods & vehicles free
Page 152 and 153: and for VAT purposes the two compon
Page 154 and 155: (i.e the lottery organizer) on whic
Page 156 and 157: The VAT charged on above should be
Page 158 and 159: 1.2.3 Other imported materials exce
Page 160 and 161: The sub-contract awarder should pay
Page 162 and 163: 2.3.1 Imported goods (except fabric
Page 164 and 165: 5.2.2 To BOI garment manufacturing
Page 166 and 167: Annexure - 2 First Schedule to the
Page 168 and 169: 4. Supply of any services to any Di
Page 170 and 171: Services 1. Electricity more than 3
Page 172 and 173: Sale before 01.08.2002 - GST Regime
Page 174 and 175: GST = (CIF + CD + Surcharge + Ex.Sp
Page 176 and 177: to indicate the date of payment of
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The period within which the Board o
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Mrs. S.N.P. Abrew - Senior Assessor
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VAT Guide to Value Added Tax - sri lanka inland revenue ...

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