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

(b) * Return furnished –tax paid – it appears to the assessor that the
amount paid is less than the amount payable or chargeable for
that taxable period –
* Additional assessment should be made on the additional amount
that ought to have been paid for that taxable period according to
the judgement of the assessor – sec. 31(I).
* The amount assessed shall be deemed to be in default from
the date on which such tax ought to have been paid by the
person chargeable with such tax – Sec. 31(2).
* Penalty calculation will be same as (a) above.
(c) * When the due date of payment of VAT is deferred by the CGIR
* Such deferred amount or part thereof which will become payable
on settlement of appeal shall be deemed to be in default,
* From the original due date of such tax – Sec. 26(2).
(d) * A refund (assessment) made in excess of the amount due or
* A refund on account of any excess input tax claimed.
* Shall be deemed to be tax in default from the first day of the
taxable period in which the excess arose if an assessment is
made on that excess amount refunded – Sec.22(8)
(e) * The amount of reduced tax with penalty thereon on final
settlement of appeal.
* Shall be deemed to be in default from the date on which such
tax ought to have been paid – Sec. 27(2).
5.10 Collection of tax (in default) of a deceased person
For the purpose of recovery of tax in default from debtors of the defaulter [Para 5.6(iv)]
the defaulter shall include the agent of a person who is in default and in the case of a
deceased person, if the tax payable by him if he were alive is in default, then the
executor, administrator, any person intermeddles with property of the deceased person or
a person entitle to apply for letters of administration is “deemed to be a defaulter” Sec.
44(5). However the executors liability is limited to the deceased persons estate in his
possession plus any part of the estate passed to a beneficiary. (For the circumstances in
which the tax payable by a deceased person, if he were alive, is in default? - Please
see para 12.6).
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