Paper 7: Direct Tax Laws
(One paper – Three hours – 100 marks)
Level of Knowledge: Advanced knowledge
Objectives:
(a) To gain advanced knowledge of the provisions of direct tax laws,
(b) To acquire the ability to apply the knowledge of the provisions of direct tax laws to
various situations in actual practice.
Contents:
I. The Income-tax Act, 1961 and Rules thereunder (90 marks)
II. The Wealth-tax Act, 1957 and Rules thereunder (10 marks)
While covering the direct tax laws, students should familiarise themselves with
considerations relevant to tax management. These may include tax considerations with
regard to specific management decisions, foreign collaboration agreements, international
taxation, amalgamations, tax incentives, personnel compensation plans, inter-relationship
of taxation and accounting, with special reference to relevant accounting standards and
other precautions to be observed to maximise tax relief. Further, they should have a basic
understanding about the ethical considerations in tax management and compliance with
taxation laws.
Note – If new legislations are enacted in place of the existing legislations relating to
income tax and wealth tax, the syllabus will accordingly include such new legislations in
the place of the existing legislations with effect from the date to be notified by the Institute.
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Paper 8: Indirect Tax Laws
(One paper – Three hours – 100 marks)
Level of Knowledge: Advanced knowledge
Objectives:
(a) To gain expert knowledge of the principles of the laws relating to central excise
customs and service tax,
(b) To acquire the ability to apply the knowledge of the provisions of the above-mentioned
laws to various situations in actual practice.
Contents:
Section A: Central Excise (40 marks)
Central Excise Act, 1944 and the related Rules, Circulars and Notifications; Central Excise
Tariff Act, 1985 and the related Rules.
Section B: Service tax & VAT (40 marks)
Law relating to service tax as contained in the Finance Act, 1994 as amended from time to
time and the related Rules, Circulars and Notifications.
Issues related to Value Added Tax:
1. Backdrop for State-Level VAT in India
2. Taxonomy of VAT
3. Input tax credit, tax invoices
4. Small dealers and composition scheme
5. VAT procedures
6. VAT in relation to incentive schemes, works contract, lease transactions and hire
purchase transactions.
7. VAT and Central Sales Tax
Section C: Customs (20 marks)
Customs Act, 1962 and the related Rules, Circulars and Notifications; Customs Tariff Act,
1975 and the related Rules.
While covering the above laws, students should familiarize themselves with the interrelationship
of accounting with excise, customs and service tax and also the ethical
considerations involved in the compliance of these laws.
Note – If new legislations are enacted in place of the existing legislations relating to
central excise, customs and service tax, the syllabus will accordingly include such new
legislations in place of the existing legislations with effect from the date to be notified by
the Institute. Students shall not be examined with reference to any particular State VAT
Law.