On which section of the Act does this matter explain ?

asked Sep 14, 2016 in NBT by Nidesh Dilusha (200 points)
Lot of customers argue on the formula that we use (100/98) x 2%for NBT in Invoices . Can any one explain with relevant section of the Act.?
related to an answer for: NBT is charging in different ways ?

2 Answers

0 votes
answered Sep 15, 2016 by wmthushara (3,810 points)
Refer the interpretations provided by IRD following this link.  http://www.ird.gov.lk/en/publications/Interpretations%20%20Rulings_Documents/interpretations__rulings_book_-_set_i.pdf

 

The point " 51 Liable Turnover For NBT Purposes" Explains this
+1 vote
answered Sep 15, 2016 by Ranidu
It is not mentioned in the Act. You may either collect NBT fully with the cascading effect (2/98) or without cascading effect (just 2/100) or just not charge from customer at all. If you charge from customers, customer can either pay it or just find some other supplier who does not charge NBT from the customers. It will all depend on the bargaining power of the buyer & seller.
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