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

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The sub-contract awarder should pay VAT upfront of deferred basis prior to removal on a Cusdec. Processor to issue a Tax invoice for the processing charges. 1.5.3 EPZ project undertakes for a BOI or non-BOI export oriented outside EPZ project :- Permitted on the request of the EPZ enterprise subject to production of goods at the time of bringing in and out of EPZ. Tax invoice to be issued for the processing charges by the processor. 1.6 REMOVAL OF MACHINERY AND EXQUIPMENT FOR REPAIRS AND LOANS:- 1.6.1 Maximum of 05 Nos. machines or parts of a particular category :- Permitted to remove without payment of VAT. 1.6.2 Machines given or taken on loan basis for temporary use and return :- No VAT is chargeable. Present format and procedure will continue. 1.7 REMOVAL OF SAMPLES 1.7.1 Removal to a buying office or buyer's representative is not subject to payment of VAT. The present BOI controlling system will continue. 2. PROJECTS LOCATED OUTSIDE EPZZ ENGAGED IN DIRECT EXPORT OF GOODS AND SERVICES (ENTERPRISES REGISTERED FOR DEFERRED FACILITY) 2.1 IMPORTS 2.1.1 Project related items needed for the establishment of project can be imported exempted from payment of VAT for the following categories, during the project implementation period as specified in the agreement or up to the date of completion of project whichever is earlier. BOI enterprises signed agreements prior to 16/05/1996 And, BOI enterprises signed agreements prior to 01/04/1998 where the total cost of investment is not less than Rs.500 million. 2.1.2 The following projects which are permitted to import project related items on the exemption of payment of VAT for a period of two years from the appointed date of VAT or until the completion of the project specified in the agreement which ever is earlier. (a) Housing and Health care project. 160
(b) (c) (d) (e) Projects engaged in unprocessed agricultural products including fishing (not including liable agricultural produced). Wheat flour milling projects. Project producing liquid fresh milk (flavoured or not). Any other projects engaged solely in producing any other goods exempted under the first schedule to the VAT Act. 2.1.3 Except fabric by the BOI approved garment manufacturers, all project related goods are permitted on deferment of VAT by the export oriented project including garment manufacturers if they export more than 50% of the value of the output directly. 2.2 TRANSFERS 2.2.1 Imported goods except fabric for garment manufacturers to another outside EPZ enterprise :- Permitted on submission of a request along with a Tax invoice for the market value (original + copy) issued by the transferor to the IS Dept. 2.2.2 To a TIEP manufacturing bond or infac project :- Permitted on submission of a Tax invoice for the market value _ Cusdec/GRN processed at SLC by the transferee subject to BOI formalities. 2.2.3 From TIEP, manufacturing bond or Infac project under SLC to outside BOI project:- Permitted on submission of a tax invoices for the market value + Cusdec/GRN processed at SLC by the transferor subject to BOI formalities. 2.2.4 To a project in an EPZ:- Permitted on declaration of goods to BOI security at the Main Gate at EPZ on producing goods along with VAT invoice for the market value (Original + copy). Prior approval to be obtained. 2.2.5 From a Customs sales bond to outside EPZ project:- With BOI approval on submission of a Cusdec with payment of VAT on market value. However, in respect of fabric if the recipient is a garment manufacturer, VAT ins not payable. 2.3 SALES 161
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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
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11.7 Set off of refunds against fut
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• To make an additional assessmen
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a genuine taxpayer who does not wis
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Penalties Tax payers should comply
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15.3 Keeping of records regarding e
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15.8 Example of a VAT Account VAT A
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the trading house or the other pers
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16.4 Concessions available to Expor
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v. Importation of services are not
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Chapter - 17 Hire Purchase Transact
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(a) Under the existing provisions V
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y the hire-purchase company to the
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Chapter - 18 Leasing & VAT 18.1 Lea
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installments. Any VAT not recovered
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18.13 Leasing inputs • Leasing in
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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 128 and 129: which he has supplied to the garage
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 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
Page 178 and 179: The period within which the Board o
Page 180 and 181: Mrs. S.N.P. Abrew - Senior Assessor
Page 182: 182
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VAT Guide to Value Added Tax - sri lanka inland revenue ...

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