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CTP-P08
(PGDM 2008-10 : Term-IV)
Corporate Tax Planning
(Faculty: Prof. Subhkant Padhi)

COURSE OUTLINE

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. 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 extremely important for a planner 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 keen to understand the tax laws and specially the application aspect of the same. 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 require some good amount of reading and analysis of decided court cases on the part of the students.


COURSE CONTENTS:

Part - I

1. Introduction
2. Basic concepts & definitions
3. Residential status
4. Sources of Income
5. Allowable expenditures and carry forward of losses
6. Tax Administration and specific compliances
7. Tax Planning through
i. Corporate Restructuring ( Mergers, Demergers ) Securities and Taxation 8. Management decisions and Tax planning:
i. Capital structure
ii. Dividend policy
iii. Bonus shares
iv. Securities
v. Purchase of asset out of own fund or from borrowed fund,
vi. Own v. Lease, Installment v. Hire purchase,
vii. Make or buy, Shut down or continue,
viii. Sale of assets used for scientific research
9. Planning for New Industries: Form of organisation, Location of business, Nature of business
10. Concept of Zero Tax Company and MAT
11. International Tax Treaties ( Double Tax Avoidance Agreements)
12. Taxation of overseas transactions and Transfer Pricing Regulations 13. Overview of CEA and CENVAT
14. 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
30%
C. End Term
40%

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 have to read many provisions on your own and apply. The art of applying will be always demonstrated in the class room. No student should take this course unless he is prepared to read a lot on his own.

ABOUT COURSE MATERIAL: Course material will be the recommended books. Class notes will be in a schematic form and is never 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
Created By: Debasis Mohanty on 03/27/2009 at 09:15 AM
Category: PGP-II Doctype: Document

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