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Questions and Answers

Renewal of international driving licence

Question: I am a holder of an international driving licence. The validity of the licence expired on August 27, 2010.

Since I am presently in the United Kingdom on an assignment for a period of over two years, I wrote to the Commissioner of Motor Traffic requesting him to advise me of the procedure of obtaining a renewal of the licence, since I am away from the country. Despite reminders I have had no response.

Can you please advise how I could obtain a renewal of my international driving licence?

Sujith Samarajeewa - United Kingdom

Answer: The Department of Motor Traffic in Sri Lanka does not issue any International Driving Licence. They only issue a driving licence for use in Sri Lanka.

However with this driving licence, one can obtain an International Driving Licence issued by the Automobile Association of Ceylon (AAC).

We presume that what you have an international driving licence issued by the AAC.

If so in order to renew your International Driving Licence you should contact AAC on e-mail [email protected] or on Tel 094112421528 or 9412421529.

They will require photocopies of your Sri Lanka Driving Licence, copies of the 1st page and the last page of your International Driving licence issued by them three photographs and you will have to renew your AAC membership is subscription for 2011 is due.

You should contact them directly by e-mail in order to obtain more details. It is unlikely that the Commissioner General will reply your letter.

Tax exemption limit for individuals

Question:

1) Has the tax exemption limit of the professionals increased from Rs 300,000 to Rs 500,000 as per last budget?

2. If it is so, is it applied to the year of assessment 2010/2011?

A Reader - Panadura

Answer:

1. Yes, the tax exemption limit for individuals whether professionals or not has been increased to Rs 500,000 per annum from Rs 300,000 per annum for the tax year April 1, 2011 to March 31, 2012. In the case of employees paying “PAYE TAX” the limit will be Rs 600,000 per annum taking into account provident fund contribution, medical insurance premium etc.

2) For the tax year April 1, 2010 to March 31, 2011 the tax exemption limit remains as Rs 300,000 per annum and the Rs 500,000 is not applicable.

Deduction of WHT on rent payable

Question: I pay a monthly rental of Rs 60,000 to my Landlord for my office and residence, which is in a two unit house, which has two separate assessment Nos. - kindly inform whether I have to deduct withholding tax from the monthly rental payment or whether the landlord has to pay to the Department. If so the percentage I have to deduct (%) from the rental. Expecting an early reply please and I thank for the valuable service you offer free to the general public.

Tenant - Nawala

Answer: Withholding tax is deductible at source for rent, royalty payments and management fees in excess of Rs 50,000 per month. The rate applicable is 10 percent. In the case of rent it is only applicable to rent paid for an office or for commercial purpose, not in the case of rent paid for dwelling.

In your case although you are paying Rs 60,000 per month. This amount is partly for the office and partly for your residence, therefore you are not obliged to deduct WHT.

This is on the basis that the two premises have two different assessment numbers. However we suggest that you make the rent payment for the units separately or the receipt should take the two assessment numbers on account of which the rent is received. If not the Tax Department could raise the question of WHT on the Rs 60,000 rent paid.

Act of incorporation

Question: I have observed that several organizations like social organizations welfare organizations, religious organizations, foundations under the names of individuals have been incorporated by Parliament and some are seeing Acts of Incorporation by Parliament.

Could you please explain the benefits that organizations gets, from such organization being incorporated by an Act of Parliament.

Wimal - Ragagiriya

Answer: Incorporation by an Act of Parliament has its own advantages as well as certain disadvantages. First it must be an organization, the purpose of which must be of National Interest to be considered for incorporation.

Such organization has to specify its purpose, activities and the composition and qualification of its members etc. Once accepted and incorporated by an Act of Parliament, this organization will be bound by the provisions in that Act.

One of the disadvantages is to act or move outside the provision of the act. Any new activity outside to provisions will not confirm to the Act. Therefore there will be restriction on the activities and its membership outside the provisions in the Act.

The advantages being the organization becoming legal entity, recognition by the State and the nation. Even recognition by NGOs for funding etc.

Refund of W & OP contributions

Question: I joined government service on 10.2.59 and retired on 10-7-98. I contributed to the W & OP Fund during the entire period.

I got married in 1970 and my wife expired on 4.2.2001. Could you please advise me whether I am entitled to a refund of my contributions to the W & OP Fund?

S P Amarasinghe - Maharagama

Answer: As far as we are aware and as for the information provided to us by the Department of Pensions, there are only two circumstances under which one can obtain a refund of his or her contribution to the W & OP. That too only at the time of retirement and not afterwards or long after.

The condition or circumstances for refund is that either the person is not married at the time of retirement or lost his or her spouse prior to the date of retirement.

In your case at the time of your retirement in 1998 you were married and your wife was alive, which meant that the Pension Department was obliged to pay W & OP to your wife even up to 2001 had you pre-deceased her.

This is the logic for non availability of refund to you.

Demarcation of boundaries

Question: While expressing my sincere appreciation of the services that yhou are rendering to the public through your column may I seek your advice regarding my problem.

I have instituted action against a certain person for demarcation of boundaries is respect of our lands. A commission was issued by court on a private Surveyor for the demarcation of boundaries.

As we were not satisfied with the demarcation of boundaries we applied for a commission to the Surveyor General.

The papers were referred by the Surveyor General’s office which in turn referred the papers to its local branch office.

The demarcation of boundaries was carried out by the branch office by marking the four corners of the land in dispute. According to the points so marked it is clear even to the naked eye that a good portion of the building that the defendant is constructing falls within the encroachment.

My lawyer however informs me that according to the report of the commission no part of the building stands within the encroachment.

I wish to know what is the relief available to me. Can I apply for a fresh commission on the Surveyor General to resurvey the land through another branch of the surveyor General’s Department.

W A Malani Wickramasinghe - Kaduwela

Answer: We are not clear of the current status. Has the Commission given its determination. We do not understand what you mean by applying for a commission to the Surveyor General. Usually it is the Courts that appoints a commissioner and it is unlikely that the Surveyor General would have been directed to do so.

May be on a request made by you the Surveyor General would have directed the branch office to carry out a survey and mark the four corners of the boundaries.

You can make a request to the Court to inspect the premises if you are not satisfied with the demarcation made by the private Surveyor appointed by the courts. Alternatively you can request for a fresh commission.

Your attorney-at-law is the best person to advise you and if you are not convinced with his or her advice, you may seek advice from another attorney at law or notary public.

EPF Claim and NIC Issue

Question: I was working at Abdulla Industries and paper bags manufactory, Maha Vidyalaya Mawatha, Colombo 13. I was contributing to Employee’s Provident Fund and my membership number was 6770/A/43 and my employer’s number was A/6770.

Although I contributed to the fund No. “A”, “B” and “H” cards were filled and signed.

When I recently went to my former company to get the “B” Card I found that the Company has changed its name and they were not in a position to complete my “A”, “B” and “H” cards as they do not have any records of the previous company.

I am a Senior citizen and having a Senior citizen card. I am unable to get the National Identity Card as my birth has not been registered and the Registrar has confirmed this fact.

I shall be most thankful if you would please advise me on the following

1 How to get my National Identity Card

2 How to claim my EPF Benefits

Your assistance and advices would be greatly appreciate

Valli Suppiah - Colombo 15

Answer: As regards your EPF, we suggest that you visit the Colombo North Division of the Labour Office situated on the 4th Floor of the Labour Secretariat at Kirula Road, Narahenpita.

There if you explain your position to the officer in charge, they will sign the “B” card for you, as well as advice you regarding the other documents.

As regards your National Identity card you can present the confirmation document received from the Registrar of Birth, along with your senior citizen card, you must produce the birth certificate of your eldest child and an affidavit stating your date of birth signed by a Justice of Peace.

If you have a horoscope written in your name, that too will be accepted. Such alternatives for a birth certificate is acceptable only in the case of those certificates who are more that 50 years of age.