Post Graduate Diploma in Taxation (PGDT) (w.e.f. 2005-06) SYLLABUS.. FACULTY OF COMMERCE OSMANIA UNIVERSITY HYDERABAD- 500 007 A.P AUGUST 2005 1
POST GRADUATE DIPLOMA IN TAXATION COURSE STRUCTURE (wef 2005-06) CODE TITLE OF THE PAPER SESSIONS IN AN YEAR* SESSIONS PER WEEK MAX. MARKS** PGDT 101 Direct Taxes-I 35 2 100 PGDT 102 Direct Taxes-II 35 2 100 PGDT 103 Central Sales Tax & 35 2 100 Value Added Tax PGDT 104 Central Excise & service Tax 35 2 100 PGDT 105 Customs Duty 35 2 100 *Session consists of 1 hour 30 Minutes. It is planned that the course must be offered on 5 days in a week, with 2 sessions per day in the evening. **Duration of the Annual Examination 3 hours. Note: All the subjects must be studied with reference to the Law/Rules in Force at the beginning of the Academic Year. Syllabus for all subject/papers include, Relevant Case laws and Problems (Wherever Applicable ) Apart from the Text Books prescribed the student should also refer the relevant BARE ACTS. The student should also refer relevant case Laws. 2
PAPER 101: DIRECT TAXES I UNIT I: INTRODUCTION: DEFENITIONS : Assessee, Person, Assessment Year, Previous Year, Income, Average Rate of Income Tax, Casual Incomes, Charitable purpose, Permanent Account Number Agriculture Income and its Assessment Distinction Between Capital and Revenue Items Exempted Incomes: Income Fully Exempt and Incomes Partially Exempted Concept of Tax Planning, Tax Avoidance, Tax Evasion and Tax Management, Areas of Tax Planning Residential Status (Theory and Problems). UNIT-II: Meaning of Total Income, Scope of Total Income Incidence of Tax Income received or deemed to be received in India Income which accrue or arise in India Taxation of Non Residents Income from the Head Salaries Tax Planning In respect of Employee Remuneration Income from the Head House Property (Theory and Problems). UNIT-III: Income Under the Head Profits and Gains of Business or Profession, Income Under the Head Capital Gains Income Under the Head Income from others sources (Theory and Problems). UNIT-IV: COMPUTATION OF TOTAL INCOME : Aggregation of Income Set off or Carry Forward of Losses Income of Other Persons included in Assessee s Total Income (Clubbing of Income) Deductions to be Made in computing of Total Liability Rebates and Reliefs of Income Tax Computation of Tax liability of Individuals Computation of Tax Liability of Co-operative societies and Charitable Trusts (Theory and Problems). UNIT-V: ASSESSMENT OF HINDU UNDIVIDED FAMILY: Meaning of HUF under Hindu Law and Under Income Tax Act Schools of Hindu Law Share of Income from HUF Property Ancestral Property Coparcener Conversion of self-acquired property into Joint Family Property Partition of HUF Computation of Total Income of HUF (Theory and Problems). 1. Vinod K. Singhania : Direct Taxes Laws & Practice. (Taxmanns Publications.) 2. B.B.LAL : Elements of Income Tax. ( Konark Publishers Pvt.Ltd) 3. Corporate Tax Planning : Girish Ahuja and Dr. Ravi Gupta. (Bharat Law Hose Pvt.Ltd.) 3
PAPER 102: DIRECT TAXES II ASSESSMENT OF FIRMS AND ASSOCIATION OF PERSONS: Meaning of Firms, Partner and Partnership Essential Conditions for Firm assessed as such (PFAAS) Change in the Constitution of Firm and Succession of Firm Remuneration and Interest Payable to Partners Provisions regarding set-off and Carry-Forward of losses by Firm Conditions for assessment of firm as Association of Persons (PFAAOP) Conversion of firm into a company Computation of Tax Liability (Theory and Problems). ASSESSMENT OF COMPANIES: Meaning of Domestic Company, Foreign Company, Indian Company, Widely Held Company and Closely Held Company Minimum Alternate Tax (MAT) Tax on Distributed Profits Carry Forward and set-off of losses Computation of Tax liability Tax Planning: Own or Lease Installment of Hire Purchase Make or Buy Decisions (Theory and Problems). UNIT III: RETURN OF INCOME AND ASSESSMENT PROCEDURE: Filing of Return of Income Return of Loss Types of Assessment Income escaping assessment Times Limit for completion of Assessments and Reassessments Interest and Penalty for default in filing of Return of Income COLLECTION AND RECOVERY OF TAX: Deduction of Tax at Source Advance Payment of Tax Recovery of Tax Tax Clearance Certificate Refund of Tax (Theory and Problems). UNIT IV: Double Taxation Avoidance Agreements Interest Payable by / to the Assessee Income Tax Authorities and Their Powers Appeals, References and Revision Advance Rulings Penalties and Prosecutions Transfer Pricing Securities Transaction Tax (Theory only). UNIT V: WEALTH TAX: Incidence of Tax Assets Location of Assets Deemed Assets Exempted Assets Valuation of Assets Debt Owned Computation of Wealth Tax liability Return of Wealth Assessment Procedure COMPUTER APPLICATION: Using Accounting Packages for maintaining records and preparing tax returns. 1. Bhagwati Prasad: Law and Practice of Income Tax in India Publications,Aligarh. 2. Vinod K. Singhania: Direct Taxes Law and Practice Taxmanns Publications. 3. B. B. LAL: Elements of Income Tax Konark Publishers Pvt. Ltd. 4
PAPER 103: CENTRAL SALES TAX and VALUE ADDED TAX CENTRAL SALES TAX: Historical Background Definitions Business, Dealer, Declared, Declared Goods, Place of Business, Registered Dealer, Sale Price, Turnover Meaning of Inter State Sale sale outside the State in the Course of Import or Export (Theory only). Liability to Tax on Inter State Sales Registration of Dealers Rates of Tax Determination of Turnover Calculation of Sales a Tax liability (Including Problems) Levy and Collection of Tax Offence and Penalties Declared Goods Liability in Special cases Various Forms proscribed under the C.S.T Act. UNIT III: A.P. VAT: Historical background Statement of Objectives and Reasons Definitions: Appellate Tribunal, Business, Casual trader, Commercial Tax Officer. Dealer, Exempt Sale, Exempted Turnover, Fair Market Value, Goods, Goods Vehicle, Input Tax, Output Tax, Purchase Price, Place of Business, Sale, Sale Price, Tax Invoice, Taxable Sale. Total Turnover, Taxable Turnover, Turnover Tax, Turnover Tax Dealer, VAT, VAT Dealer, Works Contract, Year, Zero-rated sales, Tax Deferment (only theory). UNIT IV: Registration Procedure Determination of Taxable Turnover and Tax Payable Act not to apply in certain cases Treatment of Works Contract Hire Purchase, License and Lucky Draws Tax Deduction at Source Input Tax Credit Tax Returns, Tax Invoices, Credit note and Debit Note Power of State Government to grant refund of tax, (theory and problem). UNIT V: Assessment Procedure: Self Assessment, Assessment by authorities, Procedure for Refunds, Interest Payable, Records to be Maintained, Maintenance of Books and Accounts, Tax deferment, Offences and Penalties, Appeals and Revision, Appellate Tribunal, Establishment of Check Posts, Transit Pass, Search, Seizure, Confiscation and Acquisition, Transit Movement, Advance Rulings, Transfer of Business Various forms prescribed under APVAT Computer Applications Using Accounting Packages in VAT accounting. (only Theory). 1. V.S.DATEY Indirect Taxes, Taxmann s Publication 2. S. Krishna Murthy Sales Tax Compendium of Sales Tax Cases. 3. B. Satyanarayana Naidu s Sales Tax Law in A.P. Asia Law House, Hyderabad 4. N. K. Acharya Commentary on VAT Asia Law House. 5
PAPER 104: CENTRAL EXCISE and SERVICE TAX INTRODUCTION: Administration of State Constitutional Provisions for Levy of Taxes and Duties Direct Taxes vs Indirect Taxes Interpretation of Statutes: Basic Principles- Internal and External Aids of Interpretation DEFINITIONS: Adjudicating Authority, Excisable Goods, Manufacture vs Production, Deemed Manufacture, Manufacturer, Assessee, Related Person, Place of Removal Administrative Set-up of Excise Department Central Board of Excise and Customs (CBEC), Directorate General of Inspection (DGT), Director General Anti Evasion (DGA) Powers of Central Excise Officers Charging section Levy, Collection and Exemption of Excise Duty Remission of Excise duty. Central Excise Tariff Act Principles of Classification Chapter Notes and Section Notes Kinds of Excise Duty Specific Duty, Tariff Value Based on Maximum Retail Price, Compounded levy, Advalorem Duty Assessable Value Transaction Value Inclusions in and Exclusions from Transactional Value computation of Assessable Value (Including Problems). UNIT III: Registration Procedure Clearance and Removal of Excisable Goods Physical control Self Removal Procedure Export Removal Warehousing Records, Returns & Bonds CENVAT Credit Scheme Procedure for Claiming CENVAT Credit Storage and Accounting of goods Valuation of Inventory Budget day formalities Export Procedures and Incentives Incentives for Small Scale industries Demand Exports Special Economic Zones. UNIT IV: Assessment Procedure Procedure for payment and recovery of Duty Periodic Returns Payment of Duty under Protest Refund of duty Consumer Welfare Fund Excise Audit (EA 2000) Entry, Search, Detention and Seizure Penalties and Prosecution Appeals and Revisions Customs, Excise and Service Tax Appellate tribunal (CESTAT) Advance Rulings. UNIT V: SERVICE TAX: Historical Background Overview of specified taxable services Understand the taxability of specified services Valuation Export of Services Payment of Service Tax Registration CENVAT Credit Assessment Procedure Offences Penalties and Prosecution Appeals. 1. V.S. DATEY : Indirect Taxes, Taxmann s Publication. 2. V. BALACHANDRAN : Indirect Taxation, Sultan Chand & Sons. 3. V. K. SAREEN : Indirect Taxes, Kalyani Publications. 6
PAPER 105: CUSTOMS DUTY INTRODUCTION: Domestic Trade v/s International Trade Origin of World Trade Organization Role of WTO in International Trade Tariff and Non Tariff Barriers Anti Dumping Measures EXIM Policy / Foreign Trade Policy Foreign Exchange: Exchange Rate quotations Direct quote vs indirect quote Cross Rate - Foreign Exchange Rate Mechanism Basics of Exchange Rate Risk (ERR) Techniques for handling Currency Expsoure Foreign Trade Documentation Foreign Trade Financing: Import Finance Export Finance Letter of credit Lines of Credit EXIM Bank Role of ECGC (Theory and Problem). Meaning and purpose of Customs Duty Charging Section DEFINITIONS: Assessment, Baggage, Coastal Goods, Customs Station, Customs Area, Dutiable Goods, Export, Export Goods, Goods, Foreign Going Vessel, Import, Imported Goods, India, Indian Customs Waters, Stores, Smuggling Types of Duties Customs Tariff Act, 1975 Import Procedure Valuation of Imported Goods Assessment Levy and Collection of Duty Refund of Duty Remission and Abatement of duty (Theory and Problems). UNIT III: PROCEDURE FOR EXPORTS: Different Kinds of Shipping Bills Exports General Manifest Clearance of Exported Goods Export Promotion Schemes: Advance Licence Duty Entitlement Passbook Scheme, Export Promotion Capital Goods Scheme, Duty Drawback Customs and Central Excise Duties Drawback Rules Central Reimports goods in Transit Transhipment of Goods Deemed Exports Prohibition on Importation or Exportation of goods. UNIT IV: WAREHOUSING OF IMPORTED GOODS : Warehousing Station Warehousing Bond Removal of goods from warehousing BAGGAGE: Meaning Clearance of Baggage Baggage Rules Goods Imported or Exported by post Courier Imports and Exports Coastal Goods Provisions related to STORES - Project Imports. UNIT V: Administrative Setup of Customs Department Appointment of Customs Ports, Airports Search, Seizure, Arrest and Confiscation of Goods Seizure vs Confiscation Offence and Penalties Adjudication and Appeals Revision settlement commission Customs, Excise and service Tax Appellate tribunal Advance Rulings Recovery of Sums due to Government. 1. V.S.DATEY : Indirect Taxes, Taxmann s Publications. 2. V. K. SAREEN : Indirect Taxes, Kalyani Publishers. 3. V. BALACHANDRAN : Indirect Taxation Sultan Chand & Sons. 4. R.R.BEEDU : Export-Import Finance, SNOW WHITE. 5. P.K.JAIN : International Financial Mgt. Macmillan. 7