ACT, No. 10 OF 2014

10of2014.pdf
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PARLIAMENT OF THE DEMOCRATIC
SOCIALIST REPUBLIC OF
SRI LANKA
NATION BUILDING TAX (AMENDMENT)
ACT, No. 10 OF 2014
[Certified on 24th April, 2014]
Printed on the Order of Government
Published as a Supplement to Part II of the Gazette of the Democratic
Socialist Republic of Sri Lanka of April 25, 2014
PRINTEDATTHE DEPARTMENTOFGOVERNMENTPRINTING,SRILANKA
TO BEPURCHASED AT THE GOVERNMENT PUBLICATIONS BUREAU, COLOMBO 5
Price : Rs. 12.00 Postage : Rs. 5.00

Nation Building Tax (Amendment) 1
Act, No. 10 of 2014
[Certified on 24th April, 2014]
L. D.—O. 6/2014.
AN ACT TO AMEND THE NATION BUILDING TAX ACT, NO. 9 OF 2009
BE it enacted by the Parliament of the Democratic Socialist
Republic of Sri Lanka as follows :—
1. This Act may be cited as the Nation Building Tax Short title and
(Amendment) Act, No. 10 of 2014 and shall be deemed to date of
operation.
have come into operation from January 1, 2014.
2. Section 3 of the Nation Building Tax Act, No. 9 of Amendment of
2009 as last amended by Act, No. 11 of 2013 (hereinafter section 3 of Act,
No. 9 of 2009.
referred to as the “principal enactment”) is hereby further
amended in subsection (2) of that section as follows :—
(1) by the substitution in paragraph (iii) thereof, for the
words, “other than any excepted service referred to in
the First Schedule to this Act,” of the following words
and figures:—
“other than any excepted service referred to in the
First Schedule to this Act:
Provided that, the liable turnover from the
supply of any financial service in Sri Lanka, by any
person carrying on the business of banking or
finance shall, notwithstanding anything contrary
in any other provision of this Act, be the value
addition attributable to such financial service,
calculated for the purposes of applying the
attributable method referred to in subsection (4) of
section 25C of the Value Added Tax Act, No. 14 of
2002, for the payment of Value Added Tax on the
supply of finanical services :
Provided further, that in calculating the value
addition attributable to such financial service, where
2—PL 008069—2900 (03/2014)
2 Nation Building Tax (Amendment)
Act, No. 10 of 2014
the amount of profits for each relevant quarter cannot
be accurately ascertained, such amount may be
estimated on the basis of available information. The
estimated amount shall be adjusted to reflect the
actual amount with the audited statement of
accounts on yearly basis and such adjustment shall
be submitted within six months after the closing
date of the relevant accounting period.”;
(2) in paragraph (iv) –
(i) by the substitution for subparagraph (2) thereof
of the following subparagraph:—
“(2) (a) sugar, dhal, potatoes, onions, dried
fish, milk powder or chilies under the
provisions of the Special Commodity
Levy Act, No. 48 of 2007, where such
article is sold on or before December
31, 2013, by the importer of such
article; or
(b) any article which is subject to the
Special Commodity Levy under the
provisions of the Special Commodity
Levy Act, No. 48 of 2007, where such
article is sold on or after January 1,
2014, by the importer of such article
without any processing except for
adaption for sale;”;
(ii) by the substitution in subparagraph (7) thereof
for the words “producer thereof; and” of the
words “producer thereof;”;
(iii) by the substitution in subparagraph (8) thereof
for the words “in a filling station.” of the words
“in a filling station;”;
Nation Building Tax (Amendment) 3
Act, No. 10 of 2014
(iv) by the addition immediately after subparagraph
(8) of that paragraph, of the following
subparagraphs:—
“(9) retail sale of any article at duty free
shops for payment in foreign currency;
and
(10) distribution of LP Gas.”.
3. The First Schedule to the principal enactment as last Amendment of
First Schedule of
amended by Act, No. 11 of 2013 ,is hereby further amended
the principal
as follows:— enactment.
(1) In PART I of that Schedule:—
(a) by the substitution for item (xiii) thereof, of the
following item:—
“(xiii) pharmaceuticals identified under
the Harmonized of Commodity
Descripion and Coding Numbers for
Custom purposes;”;
(b) by the substitution for item (xix) thereof, of the
following item:—
“(xix) locally manufactured tractors at the
point of sale;”;
(c) by the substitution in item (XLIV) for the words
“project implementation period; and” of the
words “project implementation period;”;
(d) by the substitution in item (XLV) for the words
“approved by the Minister of Finance.” of the
words “approved by the Minister of Finance;
and”;
4 Nation Building Tax (Amendment)
Act, No. 10 of 2014
(e) by the insertion immediatly after item (XLV)
thereof the following new item:—
“(XLVI)locally manufactured coconut oil at the
point of sale by the manufacturer, for
a period of three years commencing
from January 1, 2014;”and;
(2) In PART II of that schedule :—
(a) by the substitution for item (i) thereof of the
following item:—
“(i) the business of Banking or Finance
for any period ended on or before
December 31, 2013;
(b) by the substitution for item (vi) thereof of the
following item:—
“(vi) the provision of finance leasing
facilities in respect of any movable
property;”;
(c) by the substitution for item (xxvi) thereof of
the following item:—
“(xxvi) services provided to or within any
port or airport in relation to
international transportation;”;
(d) by the substitution for item (xxviii) thereof of
the following item:—
“(xxviii) telecommunication services, in
respect of which the
telecommunication levy has been
paid under the Telecommunication
Levy Act, No. 21 of 2011;”;
Nation Building Tax (Amendment) 5
Act, No. 10 of 2014
(e) by the substitution in item (xxxv) for the words
“Monetary Law Act (Chapter 422); and” of the
words “Monetary Law Act (Chapter 422);”;
(f) by the substitution in item (xxxvi) for the words
“on behalf of the Government.” of the words
“on behalf of the Government; and”;
(g) by the insertion immediately after the item
(xxxvi), of the following new item:—
“(xxxvii) the services provided by any relocted
international headquaters or regional
head office of any institution in the
international network, prescribed for
the purpose of Inland Revenue Act,
for payment in foreign currency.”.
4. Where the Commissioner-General of Inland Revenue Validation.
or the Director-General of Customs as the case may be,
collects under the provisions of section 4 or section 5
respectively of the principal enactment, the tax calculated
considering the provisions of this Act, during the period
commencing from January 1, 2014 and ending on the date
on which the cerificate of the Speaker is endorsed in respect
of this Act from a person to whom the provisions of this Act
applies, such collection shall be deemed for all purposes to
have been, and to be validly made:
Provided that the aforesaid provisions of this section shall
not affect any decision or order made by any Court or any
proceedings pending in any Court in respect of any tax
collected during the aforesaid period.
5. In the event of any inconsistency between the Sinhala Sinhala text to
and Tamil texts of this Act, the Sinhala text shall prevail. prevail in case of
an inconsistency.

6 Nation Building Tax (Amendment)
Act, No. 10 of 2014
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