Taxes and Fees

Stamp Duty

Definition

  • Stamp Duty is charged under section 37 of the Finance Statute of the North Western Province No.08 of 1990.

There shall be charged on

  • Every instrument relating to a transfer of immovable property situated in the North Western.
  • Every document presented of filed, in proceedings instituted in any Court of law established by law, in the North Western of Sri Lanka.

Effect From

  • 1st January, 1991

Stamp duty Rates

01.

Exchange of any Property - not between co-heirs*

a. if equal value

The same duty as on a conveyance of such property at its market value

b. if not equal value

The same duty as on a conveyance of the property of higher value, computed at its market value thereof

Exchange of any Property -  between co-heirs*

a. if equal value

10.00

b. if not equal value

The same duty as the duty payable on the transfer of a property. Whose value is equivalent to the difference in market value of the properties exchanged.

02.

Gift of immovable property*

a. Value Rs. 50,000 or less

For every Rs.100 or part thereof

3.00


b. If Value exceeds Rs. 50,000

On first Rs. 50,000

1,500.00

On the balance, for Every Rs. 100 or thereof

2.00

03.

Selling, immovable property*

a. Value Rs. 100,000 or less

For every Rs.100 or part thereof

3.00


b. If Value exceeds Rs. 100,000

On first Rs. 100,000

3000.00

On the balance, for Every Rs. 100 or thereof

4.00

04.

Every document presented or filed in the proceedings instituted in*

a. High Court

For every Rs.1,000 or part thereof (maximum of Rs.2,000)

2.00

05.

b. District Court

For every Rs.1,000 or part thereof (maximum of Rs.1,000)

1.00

Gazette

* Gazette notification -642/18, 1990.12.28


Valuation for stamp duty (immovable property)

*. To any property (other than immovable property which is gifted) and to any date, means the price which in the opinion of the Assessor, property would have fetched in the open market on that day;

*. To any immovable property which is gifted, being immovable property which was acquired by donor on or before march 31, 1977 means -

  1. The price which in the opinion of the Assessor that property would have fetched if sold in the open market on march 31, 1977 increased by an amount equal to the cost of   the improvements,   alterations and additions, if any, made to such property after march 31, 1977 and prior to the date of the instrument by which such property is gifted; or
  2. The price, which, in the opinion of the Assessor, that property would have fetched if sold in the open market on the date of the instrument by which such property is gifted;

Whichever price is the lower

*. Any immovable property which is gifted, being immovable property which was acquired by the donor after March 31, 1977 means -

  1. The price which, in the opinion of the Assessor, such property would have fetched if sold in the open market on the date on which such property was acquired by the donor, increased by and amount equal to the cost of the improvement, alterations and additions, if any, made to such property after the date on which the property was acquired by the donor, and prior to date of   the instrument by which such property is gifted; or
  2. The price which, in the opinion of the Assessor, that property would have fetched ,if sold in the  open market on the date of the instrument by which such property was gifted;

Whichever price is the lower

*. Duty is payable at the time of execution of the instrument

*. Stamp duty payable  on an instrument  relating  to a transfer of immovable property may be paid  to a prescribed bank which shall issue a Certificate in the prescribed from payment  of the amount  of   stamp duty  paid and the  date of  payment of such  duty  and such instrument  shall  have affixed on it the Certificate  of  payment issued  by the bank.

These Bank Certificate Could be Purchased from any branch of People's Bank or Bank Of Ceylon

Turnover Tax

Definition

  • Turnover Tax is charged under section 03 of the Finance Statute of the North Western N0.08 of 1990.

There shall be charged on

  • When a kind of goods or material is sold within the North Western, a Turnover Tax at the rate of 1% and 5% is collected on the selling value of the item.

Effect From

  • 1st January, 1991. Discontinued from 01st January, 2011

Turnover Tax Rates

Gold, Gems, Jewellery, Furniture, Timber, Cigarette and Liquor                  5%

Other goods and materials                                                                                   1%

Stamp Duty Revenue

Year

Target (Rs. 000,000)

Achievement (Rs. 000,000)

2008

588

609

2009

755

502

2010

836

659

2011

973

900

2012

795

896



BTT Revenue

Year

Target (Rs. 000,000)

Achievement (Rs. 000,000)

2008

600

625

2009

825

870

2010

850

865

2011

250

198

2012

45

42

* Collecting of BTT was discontinued from 01st January, 2011

Key Functional Areas

Road Development ServicesAssessing and collecting Stamp Duty based on Market Value

  • Collecting information by visiting relevant offices and from banks
  • Maintaining good rapport with Land Registries and Notaries public
  • Opening files according to the List of information
  • Calling for Instruments for file
  • Analyzing Files
  • If the paid Duty is not sufficient assess the Additional Duty

Motivating Tax Payers for paying Taxes

  • Motivating Tax payer for paying taxes and duties on Self Assessment basis
  • Making arrangement to display a notice at relevant places
  • Press release
  • Conducting awareness programs
  • Inspecting properties
  • Giving Advices about taxes and duties to taxpayers at the interviews

Bringing down the Tax in default balance Zero level

  • Percentile reduction of existing Taxes in default
  • Settling Appeals / Objections
  • Collecting taxes in default by visiting the Taxpayers
  • Proceeding with legal actions, against Tax payers who have not paid taxes or have not come on an agreement to pay taxes.

Updated Database System

  • Updating files in the Record room
  • Completing the BTT files up to 31-12-2010
  • Updating Stamp duty files
  • Facility to access an updated computerized data base trough a networked computer system
  • Research and Development of new sources of Revenue generating
  • Studying for the revenue sources within the legal provisions
  • Feasibility studies on Identified sources
  • Measuring the potential revenue from each sources
  • Determining the most suitable sources of revenue
  • Forwarding the proposal of New revenue sources to Chief Secretary for Obtaining approval
  • Implementing the approved Sources of revenue

Development of the Professional Competency of the staff

  • Conducting Training and Development programs
  • Identifying the needed areas for Professional training
  • Preparing a procedure
  • Identifying Resource persons and institutions

Appraising the performance

  • Daily and monthly progress report of each officer
  • Half-yearly report of Departmental performance
  • Annual report of Departmental performance

Good Governance

  • Functioning in accordance with Government Rules and regulations
  • Minimizing of audit queries

Bringing down the clients’ complaints to zero level




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