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Nation Building Tax (N B T)

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Nation Building Tax  (N. B. T.)

 

Nation Building Tax Acts

Nation Building Tax Act No. 9 of 2009 (with effect from 1st February 2009)

Nation Building Tax (Amendment) Act No. 32 of 2009

Nation Building Tax (Amendment) Act No. 10 of 2011

Nation Building Tax (Amendment) Act No. 9 of 2012

Nation Building Tax (Amendment) Act No. 11 of 2013

Nation Building Tax (Amendment) Act No 10 of 2014

Nation Building Tax (Amendment) Act No. 12 of 2015

 

 

Who should Pay

- Importers
- Manufacturers
- Service Providers, and
- Whole sale and retail Trade - with effect from 1st January, 2011

 

 

Threshold for Registration and Payment

on 1st January 2016 - if turnover for any quarter exceeds Rs. 3,000,000.00

on 1st January 2015 - if turnover for any quarter exceeds Rs. 3,750,000.00

on 1st January 2013 - if turnover for any quarter exceeds Rs. 3,000,000.00

on or after 1st January, 2011 - If turnover for any quarter exceeds Rs. 500,000 or Rs. 25,000,000 on following categories,

(a)  Operating hotel, guest house, restaurant ot other similar business

(b) Local value added agricultural produce, rice based products

(c)  Local education institutions

(d)  Supply of labour or employment

 

With effect from 1st January 2016 Rs. 25 Million threshold  is removed on above other than (b)


on or before 31st December 2010 - If turnover for any quarter exceeds Rs. 650,000

 


Rate  &  Due Date of Payment

From 1st January 2016   - 4%

From 1st January 2011                 -     2%

Up to 31st December 2010            -     3%

Due date of payment is on or before 20th of following months and Return should be furnished on or before 20th from the end of relevant quarter.

 


Credits on NBL - Input Tax

Entitle by every Manufacturer to credit for the tax paid on any article imported by such manufacturer or any article purchased from any other manufacturer registered for NBT being any article which is used exclusively in the business of manufacture. However, proportionate basis also considered.

No part of levy shall be refunded and excess can be carried forwarded to succeeding quarters and set off.


Exceptions

Excepted Articles

· Export of any article manufactured by him

· Value of any article imported exclusively for manufacture of articles to exports other than plant, machinery or fixtures

· Sale of any article to any person to whom this Act applies being an exporter, if CGIR satisfied.

· Temporary import of articles to be re exported within one year

· Importation of any articles which were taken out Sri Lanka for repairs

· any cinematographic film or teledrama produced in Sri Lanka and taken out of Sri Lanka for further processing or printing with the approval of the National Film Corporation

· any spare parts imported by any airline or shipping company

· Any article sold to the United Nation Organization or to any specialized agency of such organization or to diplomatic mission of any foreign Government or any member of the diplomatic staff of such mission or to any other person approved by the Minister on recommendation of Minister of Foreign Affairs.

· Any article imported if such article is subject to Special Commodity Levy

· Fertilizer

· petroleum and petroleum products,

· L. P. Gas

· Pharmaceuticals

· Tea supplied by the manufacturers to any registered broker for sale at the Colombo Tea Auction

· Sale of Import goods which are subject to Special Commodity Levy by the importer

 


Excepted Services


· Services provided to any exporter of any article to improve the quality and character of such articles

· The business of Banking or finance

· Services of sewing garments provided to any exporter of such garments

· Supply of electricity (Exemption removed with effect from 1st January 2016)

· Medical Services

· Supply of water

· Transport of goods or passengers

· Leasing of movable properties

· Service of a contractor, not being a sub – contractor in respect of constructing any building, road, bridge, water supply, drainage or sewerage system, harbour, airport or any infrastructure project in telecommunication or electricity

· Services of freight forwarder, shipping agent or courier in respect of export of any article from Sri Lanka

· Services provided by public corporation in respect of export of any article from Sri Lanka

· Operating of hotel, guest house, restaurant, or similar business registered with the Ceylon Tourist Board

· Service of an auctioneer, broker, insurance agent or commission agent of any local produce

· Services of travel agent in respect of inbound tours registered with Ceylon Tourist Board

· Service of computer software developer use wholly outside Sri Lanka and payment received in foreign currency

· Services provided over internet using custom built software by a person in Sri Lanka to a person outside Sri Lanka

· Client support service over internet or telephone to identify client/s outside  Sri Lanka

· Business of Life insurance

· Distribution or production and supply of any cinematographic films primarily for exhibition in cinemas

· Exhibiting films in a cinema

· Any service provided to the United Nation Organization or to any specialized agency of such organization or to diplomatic mission of any foreign Government or any member of the diplomatic staff of such mission or to any other person approved by the Minister on recommendation of Minister of Foreign Affairs

· Any service rendered in or outside Sri Lanka to any person or partnership outside Sri Lanka for payment in foreign currency if such foreign currency is remitted to Sri Lanka through a bank

 

N B T Exemptions  -  From 1st January 2011

Institutions

  • Government institutions including schools funded by the Government
  • Sri  Lanka Airline Ltd
  • Mihin Air (Pvt) Ltd
  • Air Lanka Catering Services Ltd

Goods and Services

· Supply of any goods) including importation) or services to a specific project carried on, out of foreign funds

or donations received  by the Government, as approved by the Minister.

· Importation of raw materials and packing materials for the manufacture of ayurveda preparation

· Services provided to the port or airline in relation to international transportation

· Services provided in relation to ship building for international market for payment in foreign currency

· Telecommunication services (Exemption removed from 1st January 2016)

· Supply of locally developed software

· Import or supply of Bitumen and Tractors

 

Removal of Existing Exemptions - From 1st January 2011

Services of star hotels above the rank of three stars

Any person registered for optional VAT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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