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CTP-W07
(PGDM PT-W 2007-10 : Term-VII)

CORPORATE TAX PLANNING
ELECTIVE : 3 CREDITS COURSE
COURSE OUTLINE

Instructor: Subhakant Padhi, FCA

COURSE OBJECTIVE:
The line between Tax Evasion and Tax Avoidance is very thin. Tax evasion is a crime, where as tax avoidance is planning by using legitimate opportunities given under the provisions of tax laws to reduce the tax liability. In a Global recession scenario, cost reduction and control as well as profit maximization is becoming extremely important. Many corporate houses are using the tax havens as well as tax holidays for escaping from tax liabilities. Therefore, tax planning requires a thorough understanding of the tax provisions. With the changing economic scenario and fast expanding corporate empires of Indian corporate houses through mergers and takeovers inside and outside the country, it is imperative for a manger to understand not only the Indian Tax laws but also the tax laws of various other countries. Not knowing the Law is no excuse and hence compliance with tax laws will be equally important for a tax planner. This course is designed for students who are likely to prepare Business Plans for their organizations as well as those who plan to get into consulting work. The course has been divided into three parts: Part one deals with the basics of tax laws, Part two deals with the planning aspects and Part Three gives an overview of the two indirect tax laws. The course will focus on various issues under the tax laws, analysis of decided court cases as well as International Tax treaties.

COURSE CONTENTS:

Part - I

1. Introduction
2. Basic concepts, definitions, Residential status
3. Sources of Income & allowable expenditures and carry forward of losses
4. Tax Administration and specific compliances
5. Tax Planning through
i. Corporate Restructuring ( Mergers, Demergers ) Securities and Taxation 6. Management decisions and Tax planning:
i. Capital structure, ii. Dividend policy, iii. Bonus shares & Securities
iii. Purchase of asset out of own fund or from borrowed fund,
iv. Own v. Lease, Installment v. Hire purchase, Make or buy, Shut down or continue, Sale of assets used for scientific research
7. Planning for New Industries: Form of organisation, Location of business, Nature of business
8. Concept of Zero Tax Company and MAT
9. International Tax Treaties ( Double Tax Avoidance Agreements)
10. Taxation of overseas transactions and Transfer Pricing Regulations 11. Overview of CEA and CENVAT
12. Overview of Service Tax Provisions

PERFORMANCE EVALUATION
It shall be done through term examinations and quizzes. Weightage for different components is as under.
Evaluation component
Weightage
A. Quizzes
30%
B. Assignment & Term Paper
35%
C. End Term
35%

PEDAGOGY: Provisions of the Act will be discussed placing emphasis on judicial interpretation and their consequent effect on decision making. Application for managerial decision making will be demonstrated through solving numeric cases wherever there are alternatives available.

EXPECTATION FROM STUDENTS: You need to develop an interest in analyzing a few cases and make an effort in using in real life situation. The art of applying will be always demonstrated in the class room.

ABOUT COURSE MATERIAL: Course material will be the recommended books. Class notes will be in a schematic form and should not be treated as a substitute for book reading.

BOOKS RECOMMENDED:

Direct Taxes: Planning & Management by V.K. Singhania
Direct Taxes Law & Practice by V.K. Singhania
Direct Tax laws by T.N. Manoharan
Direct Taxes Law & Practice by Girish Ahuja & Ravi Gupta
Indirect Tax Laws by V.S.Datey

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Created By: Lingaraj Pattanaik on 07/30/2009 at 11:54 AM
Category: ExPGP-NR-III Doctype: Document

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