MEMBERS NEWSLETTER

MEMBERS NEWSLETTERApril 2011(Relevant Guidelines can be obtained from the department of Inland Revenue or visit theDepartmental Website – www.inlandrevenue.gov.lk)6. Other(a) Time bar relating to assessments ( Section 33)The present time bar provisions relating to fraud or willful evasion is removed.(b) VAT advance payments (WHT) ( Section 26A)The present provisions referred to in section 26A are removed.(c) Penal provisions will be introduced for nonpayment of VAT on self assessment basis underinstallments and the non submission of return for VAT on Financial services(d) 15 day Refunds (Section 22)15 day refund Scheme is removed with effect from April 1. 2011 with the newsuspension scheme is introduced(e) Exemption for SME sector (Section 21)SME sector has been defined for this purpose as the sector in which the annualturnover does not exceed Rs 100 MN. The tax not paid up to December 31.2010, due toexistence of the conflict environment or the financial constrains shall be exempted onsubmission made to the Commissioner General of Inland Revenue subject to assurance offuture compliance.(f) Identification of Islamic Financial transactions: Provisions have been incorporated inthe Act to identify such transactions and the treatment of tax for that.