Course Objective : Corporate live with an obsession to become a profit making, yet zero-tax company. If achieved, then it is a demonstration of financial wizadry of the company. Lowering tax burden has a significant impact on the overall cost, return and financial state of affairs of the company. Incidentally, it affects the cash flow and its timing as well. The objective of lowering tax burden should be resorted to through means which fall into the domain of tax planning rather than tax avoidance or evasion. The line of demarcation is thin and blurred. It becomes a choice based upon what is legitimate and what is illegitimate. Legitimacy stems from availing the maximum deduction, rebate, relief and exemptions and also from the choice of right alternative whenever the provisions throw opportunity for choice. The choice would depend on a deep understanding of the related provisions and their collective ramifications. Case made laws, in addition to statute made laws, play a significant role in shaping the choice. Hence it requires an understanding of case based laws also. The course objectives include:
To know how to use tax planning devices in managerial decision making
To provide an overview of CEA basic provisions and CENVAT
To provide an overview of VAT |
Session Details :
Session
Topic
Issues to be Discussed
Links
Reading Material
Assignments
1
Basic concepts & definitions
Rules for interpretation of statute, basic concepts of revenue laws
2
Residential status and planning
Residential status of different persons, scope of total income, planning
3
Business expenditure & tax planning, avoiding disallowances
Scope of section 28, cases in relation to business, depreciation and tax planning
4 Business expenditure & tax planning, avoiding disallowances
Scientific research expenditure, preliminary expenditure, section 36 and general revenue expenses
5 Business expenditure & tax planning, avoiding disallowances
Disallowance sections (40,40A, 43B)
6 Capital Gains & Planning
Chargeability, definitions
7 Capital Gains & Planning
Planning for transfer
8 Capital Gains & Planning
Computation and exemptions
9 Income from other sources
Section 56,57,58
10 Losses and planning
Carry forward and set off provisions, tax savings of losses
11 Corporate Restructuring (Internal and External) - Tax Planning
Merger, amalgamation, demerger, slump sale, internal restructuring
12 Corporate Restructuring (Internal and External) - Tax Planning
Merger, amalgamation, demerger, slump sale, internal restructuring
Chapter-32 of the text book
13 Securities and Taxation
Securities and capital gains, taxation of ESOPs, bonus, right shares, ZBs, Transaction tax, exemptions, Derivatives
Handout to be given
14 Holding and Subsidiary Company & Tax Planning
Transfers, WDV, Depreciation, Business connection, using subsidiaries as SPVs
15 Financial management decisions & Tax Planning
i) Capital structure (self-reading) ii) Dividend policy iii) Bonus shares
16 Planning for new industries
Form of organisation, Location of business, Nature of business (self-reading)
17 MAT & Planning
Ways to reduce book profit, tax credit
18 Tax planning with respect to managerial decisions
Tax planning with respect to managerial decisions:
Purchase of asset out of own fund or from borrowed fund, Own v. Lease, Installment v. Hire purchase, Make or buy, Shut down or continue, Sale of assets used for scientific research
Handout to be given
19 International Taxation
Transfer pricing regulations
20 Overview of CEA and CENVAT
Basic concepts, valuation, CENVAT credit
21 VAT
Concept, Impact on pricing
Evaluation : It shall be done through term examinations and quizzes. Questions would be asked from material meant for self-reading.
Self reading of all tax news that comes in the Economic Times during the term and in the following websites is manadatory.
Weightage for different components is as under:
Quizzes: 40%
Mid Term-30%
End Term-30% |