Address
No 09-5/1, Station Road, Colombo 04, Sri Lanka
Work Hours
Monday to Friday: 8.30 AM - 5 PM
WHO ARE LIABLE TO SSCL (AND NEED TO OBTAIN REGISTRATION FOR THIS TAX)
Any person who is a
- Importer
- Manufacturer
- Service Provider
- Wholesale or retail trader(Includes import & sale. Excludes sale by manufacturer identified above)
REGISTRATION – Every taxable person (other than Importers) who carries on a taxable activity shall make an application to register either not later than fifteen days from the date of operation of this Act or if within 12 months from the 1st of October 2022 the aggregate turnover exceeded Rs.120 million or not later than 15 days from the date the aggregate turnover exceeds or is likely to exceed Rs. 30 million per quarter
THE RATE OF TAX – SSCL is charged at the rate of 2.5% of the liable turnover
TAX PERIOD – SSCL is chargeable on a quarterly basis and the 1st quarter starting on the 1st of October 2022
MEANING OF TURNOVER – The meaning of turnover varies according to the activity carried out. Please note the tax is computed on the liable turnover which is different from the turnover. The meaning of turnover for the different activities is given in the table below
TURNOVER DOES NOT INCLUDE – Bad Debts (if later recovered shall be included in the quarter in which it was recovered. Any VAT paid during the quarter under the VAT Act. Any rebate paid under the Export Development Rebate in relation to any international event as approved by the Minister.
What Constitutes Turnover for Different Activities
IMPORTERS – The value of the article ascertained for the purposes of VAT (as per S6 of VAT Act No 14 of 2002) but excluding the value of any articles exempted under this Act.
MANUFACTURERS – The sum receivable (whether received or not) in that quarter of any article manufactured and sold in Sri Lanka but
excluding the value of any articles exempted under this Act.
SERVICE PROVIDERS
- FINANCIAL SERVICES – The sum receivable (whether received or not) in that quarter from the supply in Sri Lanka of any financial services by a person carrying on the business of supplying financial services in Sri Lanka but excluding the value of any services exempted under this Act. The turnover arising from Islamic Financial transaction shall be subject to the levy in a similar manner as equivalent in substance to nonIslamic products
- REAL ESTATE SERVICES – The real estate and improvements to be valued as per S5 (7) of the VAT Act but excluding the value of any services exempted under this Act.
- ALL OTHER SERVICES – The sum receivable (whether received or not) from provision of any services except Financial Services and Real Estate Services in Sri Lanka but excluding the value of any services exempted under this Act
WHOLESALE/RETAIL TRADE – The sum receivable (whether received or not) from wholesale/retail sale of any item in Sri Lanka but excluding the value of any articles exempted under this Act.
SUBMISSION OF RETURNS – Every registered person shall furnish to the CGIR a return either in writing or by electronic means for every quarter on or before the 20 th day of the month after the end of each relevant quarter. The return shall be in the form specified by the commissioner if not deemed as a return was not submitted. If the return submitted was not in the form specified an Assistant Commissioner could issue a notice to submit a return in the specified form within 14 days of receipt of such notice and shall issue an acknowledgment of receipt of the return if a proper return is submitted which shall be treated as a valid return.
PAYMENT OF THE SSCL – It shall be accounted for on an accrual basis and every registered person shall pay the levy payable for the month on or before the 20th of the subsequent month. You can read more on this here
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