Syllabus of Indirect Taxes – CA, CMA and CS

Syllabus of Indirect Taxes of the three prime Institutions

The ICAI – Final - Paper 8 – Indirect Tax Laws – Final – 100 Marks (Effective from November, 2008 – new Syllabus)

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.


CA IPCC and Accountants Technician from November 2009

Part II: Service tax (25 marks) and VAT (25 marks)


To gain knowledge of the provisions of service tax as mentioned below and basic concepts of Value Added Tax (VAT) in India.

Service tax (25 marks)


1. Service tax – concepts and general principles

2. Charge of service tax and taxable services

3. Valuation of taxable services

4. Payment of service tax and filing of returns

VAT (25 marks)

5. VAT – concepts and general principles

6. Calculation of VAT Liability including input Tax Credits

7. Small Dealers and Composition Scheme

8. VAT Procedures.

Note: If new legislations are enacted in place of the existing legislations the syllabus will accordingly include the corresponding provisions of such new legislations in the 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.


ICMAI (earlier ICWAI) Intermediate – New Syllabus (from December, 2008) – Applied Indirect Taxes (One Paper: 3 hours : 100 marks)

Objectives: • To gain knowledge of various provisions of Central Excise, Service tax, VAT & Sales Tax. • To know the applications of provisions in different situations • To understand the statutory compliance under indirect taxes including audits

1. Canons of Taxation – Indirect Taxes 5% – • Features of Indirect Tax. Constitutional validity. Indirect Tax Laws, administration and relevant procedures

2. Central Excise 25% • The Central Excise Law • Goods, Excisable goods, Manufacture and manufacturer, Classification, Valuation, Related Person, Captive Consumption, CAS 4, CENVAT • Basic procedures, Export, SSI, Job Work. • Assessment, Demands, Refund, Exemptions • Powers of Officers. • Adjudication, Appeals, Settlement Commission, Penalties • Central Excise Audit and Special Audit under 14A and 14AA of Central Excise Act • Impact of tax on GATT 94 WTO, Anti Dumping processing • Tariff Commission and other Tariff authorities.

3. Customs laws 15% • Basic concepts of customs law • Territorial waters, high seas • Types of custom duties., Anti- Dumping Duty, Safeguard Duty • Valuation • Customs Procedures, Import and Export Procedures, Baggage • Exemptions • Warehousing, Demurrage • Project Imports and Re- Imports • Penalties and Offences • Export Promotion Schemes. EOU • Duty Drawback. • Special Economic Zones.

4. Service Tax 15% • Introduction, Nature of Service Tax. • Service Provider and Service Receiver. • Registration procedure • Records to be maintained • Classification of taxable services • Valuation of taxable services. • Exemptions and Abatements • Payment of service tax, Return • Cenvat Credit Rules • Export and import of services. • Other aspects of Service Tax. • Taxable Services. • Special Audit under 14A and 14AA of Central Excise Act

5. Central Sales Tax Act & VAT Act. 15% • Introduction, definition of sale under CST • Stock transfer, branch transfer under CST • Inter state sale, • Various forms for filing of sales tax returns under CST • Sales outside territorial waters under CST • Procedures • Practical examples on CST • VAT, Salient features of State VAT Acts • Treatment of stock & branch transfer under State VAT Acts • Filing & Return under State VAT Acts • Accounting & Auditing VAT

6. Practical problems and Case Studies under Indirect Tax Laws 25%

 ICMA (earlier ICWAI) Final – Indirect & Direct Tax Management (One Paper: 3 hours -100 marks) (Effective from December, 2008)

Objectives: • To gain expert knowledge about the direct and indirect tax laws in force and the relevant rules and principles emerging from leading cases • To provide an insight into practical aspects and apply the provisions of laws to various situations. • To understand the various external Auditing Requirements under tax laws.

1. Central Excise 20%

2. Customs 10%

3. Service Tax 10%

4. Export Promotion Schemes, Foreign Trade Policy, EOU, SEZ. 10 %

5. Central Sales Tax/ VAT Act 5%

6 Income Tax including Fringe Benefit Tax. 20%

7. Wealth Tax 5%

8. Case Studies under Direct and Indirect Taxes. 20%


ICSI Executive Programme (Earlier Intermediate) – PAPER 3 : TAX LAWS

Level of knowledge : Working knowledge.

Objectives : (i) To impart knowledge of the basic principles underlying the substantive provisions of income-tax, wealth tax, service tax and value added tax laws to the students. (ii) To equip students with application of principles and provisions of above tax laws in computation of income and taxation of a ‘person’ excluding companies under various heads of income and their assessment procedures.

Detailed contents :

Part – A (60 Marks) – The Income-tax Act – (Not reproduced)

Part B (20 Marks) – Service Tax

13. Background, Statutory provisions, taxable services, valuation, administrative mechanism and procedural aspects, rate and computation of tax.

14. Assessment, levy, collection and payment of service tax, exemptions, CENVAT credit for service tax, returns, appeals, revisions, advance rulings, role of Practising Company Secretaries.

Part C (20 Marks) – Value Added Tax

15. Legislative background, concept of VAT - white paper on VAT, Report of Empowered Committee of State Finance Ministers, constitutional provisions, relationship of VAT with inter-state commerce and works contract tax, liability under VAT; withdrawal of Central Sales Tax; Goods and Service Tax.

16. Computation, procedural aspects including registration, filling of returns, rates of tax, assessment, credit and set-off, returns, refunds, audit, appeals, revision and appearances.

17. Appointment, jurisdiction and powers of authorities, certifications for professionals.

18. Concept of VAT on services, VAT in other countries, scope for Company Secretaries.