MEMBERS NEWSLETTER

MEMBERS NEWSLETTERApril 2011subject to the lower amount of 10% of the unabsorbed input credit or 5% of the net taxpayable.In a case of a person who does not have any taxable supplies liable to tax with effect fromJanuary 1, 2011, the unabsorbed input credit as at December 31, 2011 may be set off in thefollowing manner subject to the same restriction. (The total claim, not exceeding 10% ofthe unabsorbed input credit as at 31/12/2011 or 5% of the tax payable whichever is lower)(i) Where the registered person is an operator of telecommunication services licensedunder section 17 of the Sri Lanka Telecommunication Act No 25 of 1991, the set off shall bemade against the sum payable as telecom levy.(ii) In the case of a registered person who is liable to pay income tax, the set off shall bemade as against the sum payable by such person as income tax payable effective fromJanuary 1, 2011.(iii) If provisions (i) or (ii) is not applicable the set off shall be made against the sumpayable after January 1, 2011 , by such person as tax under any written law for the timebeing in force, administrated by the Commissioner General of Inland Revenue4. Submission of returns (section 83 and 25B)(a) Monthly returns - zero rated persons, deemed exporters and persons registered duringthe project implementation periodQuarterly returns – for all others with payments on monthly basis(b)Suppliers of Financial ServicesBi-annually with payments on monthly basis – Effective from the 6 month ending 30.06.2011.5. VAT Suspension Scheme(a) The present suspension operated through Textile Quota Board (TQB) and ExportDevelopment Board (EDB) is brought under the Commissioner General of Inland Revenue witheffect from April 1, 2011. The implementation is as specified in the Guidelines by theDepartment.(b) The new suspension scheme with regards to supplies not covered under the aboveschemes is implemented through the Commissioner General of Inland Revenue for thefollowing categories:- Suppliers to exporters- Suppliers to deemed exporters- Suppliers to special projects- Suppliers to persons registered under section 22(7)