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

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the trading house or the other person who obtained the export order supplies the raw-materials to the manufacturer it becomes a local supply of goods (such a local supply is excluded from VAT in the case of an approved trading house which imports and supply fabric to a BOI manufacture for manufacture & export garments vide para 2.4.1) The export proceeds becomes part of the turnover of the manufacturer. In any event zero-rating cannot be granted to two registered persons in respect of the same export. • In order to claim input credit the exporter must have been registered for VAT. The importers identification number which is sometimes called the temporary registration number is not sufficient. • Local sales for foreign currency will not be considered as exports eg. Sale of jewellery for foreigners who will pay in foreign currency and take them out of the country. 16.3 Buying & Selling and Import & Export 16.3.1 Mixed Activities A person may (a) exports part of goods he buys locally (b) sell the other part locally Local purchase (c) exports part of the good he imports (d) sell the balance imports locally. Imports 16.3.2 Compulsory Registration • If the value of (a) +C) +(d) other than the value of local sale of exempt imported goods, exceeds the taxable threshold such person is liable to be registered compulsorily for activities (a),(c) and (d) only. (i.e excluding local buying and selling) • Such person also can come under voluntary registration in respect of (a), (c) and (d) only. • If such person is registered for (a),(c) and (d) only (i.e local buying and selling excluded) then he cannot claim input credit in respect of local buying and selling. Records must be kept to enable to identify easily, the items which were bought and sold locally. Please see para 15.3 • Department will be careful to check whether input tax has been claimed incorrectly in such cases. 90
16.3.3 Voluntary registration for buying and selling in addition to import and export • A person engaged in activities as described in 16.3.1 can register for local buying and selling part of his activity i.e (b) in addition to others i.e (a),(c) and(d) . In such event he should declare out put tax on local buying and selling also and claim input tax on the same. Please see last para in 4.3.(ii) • Records must be maintained to identify such activities. Vide Para 15.3 16.4 Concessions available to Exporters i. Concessions are available in respect of import of goods made by • Exporter who import goods for manufacture and export of goods so manufactured. • Exporters in BOI sector who import fabric for the purpose of manufacture and export of garments and • Certain indirect exporters who import fabric for manufacturer & export of garments through other s in BOI Sector. ii. Concessions are also available to BOI garment Manufacturers cum Exporters (a) when they purchase fabric from BOI manufacturers of fabric and (b) when they transfer fabric imported by them to any other person for manufacture and export of garments Please see table. 91
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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
Page 40 and 41: 6.3 Approval For Deferment Facility
Page 42 and 43: iv. If an importer declares only pa
Page 44 and 45: 6.6 Deferment on Local Supplies (Te
Page 46 and 47: 7.4 Tax Invoice Tax invoice should
Page 48 and 49: 7.11 Use of tax fraction to compute
Page 50 and 51: Lower Rate - 10% Goods and services
Page 52 and 53: Chapter - 9 Calculation of Tax 9.1
Page 54 and 55: accounted for in respect of all the
Page 56 and 57: transferred to a taxable activity a
Page 58 and 59: Eg. If A is an ice-cream vendor who
Page 60 and 61: (3) In the above case if the regist
Page 62 and 63: • claim (deduct) only the allowab
Page 64 and 65: • “Value of Supply” has to be
Page 66 and 67: VAT chargeable = 900,000 x 20% = 18
Page 68 and 69: • The Director General of Customs
Page 70 and 71: 10.5.6 Milk - item (iv) • Liquid
Page 72 and 73: (i) Insurance - xi(i) • Only the
Page 74 and 75: in Sri Lanka and consumed in Sri La
Page 76 and 77: 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 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 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
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Supply of facilities for crew chang
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4. Yard to Port Transporting contai
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Chapter - 26 Travel Trade, Tourism
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ii. iii. But “travel insurance“
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26.6 VAT ON MICE Tourism VAT rate a
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x. Supply of goods & vehicles free
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and for VAT purposes the two compon
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(i.e the lottery organizer) on whic
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The VAT charged on above should be
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1.2.3 Other imported materials exce
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The sub-contract awarder should pay
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2.3.1 Imported goods (except fabric
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5.2.2 To BOI garment manufacturing
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Annexure - 2 First Schedule to the
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4. Supply of any services to any Di
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Services 1. Electricity more than 3
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Sale before 01.08.2002 - GST Regime
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GST = (CIF + CD + Surcharge + Ex.Sp
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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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