We have the BBS 3rd year Taxation in Nepal Syllabus PDF. Taxation is a very important subject for BBS third-year students. If you prepare with better knowledge, you can easily score a good score. However, if you do not know the basics of taxation, you may lose marks easily. So, following the syllabus can be very useful for you to get better marks in Taxation in Nepal.
BBS 3rd year Taxation in Nepal Syllabus PDF
Following are the BBS 3rd year Taxation in Nepal Syllabus PDF.
MGT 224: Taxation in Nepal
Full Marks: 100 Lecture Hours: 150 Pass Marks: 35
Course Objectives
The objective of this course is to provide students with the knowledge of general principles and practices of taxation in Nepal and develop in them the basic skills required to solve practical problems regarding income tax, vat and enable for preparing tax returns.
Course Description
This course includes conceptual foundation, tax accounting, classification of taxpayers, taxation of income, heads and sources of income, income from employment, capital gain tax, income from investment, valuation of stocks and depreciation, business loss, income from business, total assessable income, tax liability and tax payable, value added tax, rights and duties, tax collection and realization, penal provision, review and appeal, tax auditing.
Unit 1: Conceptual Foundation 10 LHs
- Meaning and objectives of tax; Types of tax: Direct tax and Indirect tax.
- Canons of taxation; Historical background of income taxation in Nepal.
- Tax laws: Constitution, Tax Act, Tax rule, Finance Act, Legal precedents established by the court.
- Features of the Income Tax Act, 2058.
- Meaning of basic terms used in income taxation.
Unit 2: Tax Accounting 3 LHs
Content
- Registration for Permanent Account Number (PAN).
- Concepts of tax accounting.
- Accounting methods for different taxpayers.
- Cash basis of accounting and Accrual basis of accounting.
- Changing accounting methods.
Unit : 3 Classification of Assesses/Tax payers 6 LHs
Contents
- Natural persons and entities; Single, couple, and family; Resident and non-resident.
- Special provisions for natural persons.
- Entities and retirement savings.
Unit 4: Taxation of Income 6 LHs
Contents
- Concepts of: Presumptive taxation, Turnover taxation, Personal (non-corporate) taxation, Corporate taxation.
- Provisions of presumptive taxation and Provisions of turnover taxation in Nepal.
Unit 5: Heads and Sources of Income 2 LHs
- Sources: Employment, Business, Investment, Casual gain.
Unit 6: Income from Employment 16 LHs
Contents
- Concept of employment, the difference between employment and profession.
- Features of employment income, Incomes chargeable under income from employment, Non-chargeable employment incomes.
- Allowable reductions, exemptions, and applicable tax rates; Tax liability and tax payable.
Unit 7: Capital Gain Tax 4 LHs
Contents
- Concept of capital gain and capital gain tax.
- Computation of capital gain on disposal of depreciable assets, business assets, and non-business chargeable assets.
- Provisions for adjustment and carry-forward of capital loss, Applicable tax rates for individuals and entities.
Unit 8: Income from Investment 10 LHs
- Concept of investment income; Difference between investment and business.
- Chargeable and non-chargeable incomes from investment.
- Deductible expenses and non-deductible expenses; Assessable income from investment.
- Set-off and carry-forward of investment losses.
- Investment income from domestic sources and foreign sources; Tax liability and tax payable.
Unit 9: Valuation of Stocks, and Depreciation 10 LHs
Contents
- Methods of stock valuation, adjustments for over- and undervaluation of stocks.
- Calculation of the cost of trading stocks.
- Assets pooling system of depreciation, Calculation of depreciation basis, and allowable depreciation.
- Provisions for unabsorbed pollution control costs, research and development costs, and repair expenses.
- Provisions of additional depreciation allowance.
Unit 10: Business Loss 6 LHs
Contents
- Concept of assessed business loss, Set-off of business loss, Carry forward of business loss.
Unit 11: Income from Business 20 LHs
- Concept of business income; Concepts of capital and revenue incomes and expenses.
- Chargeable and non-chargeable incomes from business.
- Deductible and non-deductible expenses; Assessable income from business.
- Tax liability and tax payable.
Unit 12: Total Assessable Income 6 LHs
Contents
- Concepts of total assessable income and taxable income.
- Allowable reductions: retirement contribution, insurance premium, and remote area allowance.
- Reductions of the additional exemption limit for persons having pension income and disabled individuals, Reduction of the foreign allowance, Reduction of donations.
Unit 13: Tax Liability and Tax Payable 6 LHs
- Statutory exemption limit; Progressive slab rates and flat rates; Tax concessions.
- Adjustments of advance tax; Tax deduction at source (TDS), and Tax credits.
- Tax payable and tax clearance.
Unit 14: Value Added Tax (VAT) 16 LHs
Contents
- Concept, principles, and types of Value Added Tax (VAT).
- Characteristics of Vat: Burden shifting, multi- stage imposition, zero-rating, deletion of cascading effect, substitute of sales tax.
- Evolution of VAT, Origin and evolution of VAT in Nepal; Methods of Vat.
- Addition, Subtraction, Tax credit, Accounting of VAT.
- purchase book, sales book, and VAT book; Collection, realization, and refund of VAT; Penalties, actions, and appeal.
Unit 15: Rights and Duties 5 LHs
- Rights of tax Authorities.
- Government of Nepal, Inland Revenue Department (IRD), Director General (DG), Chief Tax Officer and other officers.
- Rights and duties of taxpayers.
Unit 16: Tax Collection and Realization 6 LHs
Contents
- Concept of tax collection, realization, remission, and refund.
- Methods of tax collection: installment, withholding (tax deduction at source, TDS), self-assessment, presumptive tax.
- Methods of tax realization, Provisions of refund and remission.
Unit 17: Penal Provision, Review and Appeal 8 LHs
Contents
- Concept and differences of penalty and offence.
- Provisions relating to fees and interest, provisions relating to offences.
- Concept of administrative review and appeal.
- Administrative decisions eligible for review, procedure of filing objections for administrative review; Provisions relating to appeal to the Revenue Tribunal.
Unit 18. Tax Auditing 10 LHs
- Relationship between Taxation and Auditing.
- Concepts, types, and major functions of auditing; Internal control.
- Internal auditing and internal checks: Concept, scope, and objectives of tax auditing.
- Provisions of tax auditing in the Income Tax Act, 2058, and the Value Added Tax Act,2052.
Suggested Readings:
- GON, Budget speech and Finance Act (Recent).
- GON, Income Tax Act, 2058 (With amendments).
- GON, Income Tax Rules, 2059 (With amendments).
- GON, Value Added Tax Act, 2052 (With amendments).
- GON, Value Added Tax Rules, 2053 (With amendments).
- Dhakal, K. D. et.al. (updated edition). Fundamentals of Taxation and Auditing, Ashmita Books Publishers and Distributors Pvt. Ltd., Kathmandu.
- Kandel, P. R. & Lamsal R. (updated edition). Tax Laws and Tax Planning in Nepal, Benchmark 52 Education Support Pvt. Ltd., Kathmandu.
- K.C., J.B. (updated edition), Tax Laws and Tax Planning, Theory and Practice, Khanal Books and Stationery, Kathmandu.
- Lekhi, R. K. (2018). Public Finance, Kalyani Publishers, New Delhi.
- Regmi, G.N. et.al. (updated edition). Fundamentals of Taxation and Auditing, KEC Books Publication and Distribution Pvt. Ltd., Kathmandu.
- Sapkota, P. P. & Pandey, D.L. (updated edition). Fundamentals of Taxation and Auditing, Pinnacle Publication Pvt. Ltd,. Kathmandu.
Hence, these are the BBS 3rd year Taxation in Nepal Syllabus PDF.
Other Important Links
a. BBS 3rd year all subjects notes: CLICK HERE.
b. BBS 3rd year all subject Syllabus: CLICK HERE.
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