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Impact of VAT amendment to imported fabric
As per the amendments made by Value Added Tax (Amendment) Act No. 25 of 2018, following exemptions were removed with effect from 16.08.2018.Supply or Import of;fabric for domestic consumption...
VAT liability on sale of residential houses and condominium units of a condominium project.
As per the VAT amendment Act, No.25 of 2018, the VAT exemption granted for sale of residential houses and residential condominium units of a condominium project has been removed with...
Are you permitted to prepare Financial Statements for the year ended December 31 and have you an interest income on government securities?
As per the letters dated February 5,2018 and March 12,2018 issued by the Commissioner General of Inland Revenue to the Sri Lanka Bank’s Association, followings are the main instructions...
Statement of Estimated Income Tax Payable & tips on Self Assessment payments
Statement of Estimated Income Tax Payable As per the Section 90,91,92 of the Inland Revenue Act No.24 of 2017 each person who is liable to pay income tax is required to submit a statement...
Values for Non cash benefits
Department of Inland Revenue has published revised Values of non cash benefits for PAYE purposes. These are effective from 01.04.2018. Key Changes are given below
Return of Income and installment payments for Y/A 2018/19
Return of Income Inland Revenue Act No. 24 of 2017 is effective from 01.04.2018 (i.e Y/A 2018/19).As per section 93 of Inland Revenue Act No. 24 of 2017, every person shall file a return...
The benefit on vehicle(hired or operating lease) given to an employee for the purpose of exclusively use in private
"The value of benefit to an employee from the (fully or partly) private use of any motor vehicle should be the market value"If the company pays hiring charges or opertaing lease rentals...
Should every individual need to open an income tax file?
As per the provisions of the Inland Revenue Act No. 24 of 2017, every person who has a taxable income shall file a return of income.However, a resident individual who only has income...
The impact of non-availability of Direction procedure for Investment Returns
As per the Section 84 of the Inland Revenue Act No. 24 of 2017, interest, discounts , rent etc. are subject to withholding tax at the rates given below.Investment ReturnWithholding...
Impact of Withholding Tax (WHT) on Tuition industry.
As per the Section 85 of the Inland Revenue Act No.24 of 2017, Withholding Tax should be deducted from payment for teaching , lecturing ,examining ,invigilating or supervising an examination...
Consequences on non compliance with the provisions of withholding tax
Withholding agents are required to deduct relevant withholding taxes and remit to the Department of Inland Revenue in accordance with the provisions of the Inland Revenue Act. If any...
How to handle tax burden on interest
As per the Inland Revenue Act, No.24 of 2017, there is a restriction to deduct interest on borrowings when calculating taxable profit from a business.The restriction is that,if the...
A Special note on Withholding Tax
Based on Circular No.SEC/2018/06 dated 18.04.2018 issued by the Commissioner General of Inland Revenue, important points on withholding tax are given below.
The reality of PAYE under the New Inland Revenue Act
Employees, those who were entitled only for salary up to Rs.425,000 (without travelling allowance) will be benefited from New IR Act and if salary exceeds Rs.425,000,higher PAYE tax...
KEY CHANGES IN THE INLAND REVENUE ACT, NO 24 OF 2017
The provisions of the Inland Revenue Act, No 24 of 2017 shall effect from today onwards (1/4/2018).You may make sure whether you are aware following key changes.
