DIRECT TAX LAWS AND INTERNATIONAL TAXATION

1 STUDY NOTESFINAL : PAPER -16 SYLLABUS - 2016 DIRECT TAX laws AND INTERNATIONAL TAXATIONThe Institute of Cost Accountants of IndiaCMA Bhawan, 12, Sudder Street, Kolkata - 700 016 FINALC opyright of these Study Notes is reserved by The Insitute of CostAccountants of India and prior permission from the Institute is necessaryfor reproduction of the whole or any part Edition : August 20162nd Edition : April 20173rd Editioin : February, 2018 Published by :Directorate of StudiesThe Institute of Cost Accountants of India (ICAI)CMA Bhawan, 12, Sudder Street, Kolkata - 700 at :Jayant Printery LLP352/54, Girgaum Road,Murlidhar Temple Compound,Mumbai - 400 002 Syllabus - 2016 PAPER 7.

2 DIRECT TAXATIONS yllabus StructureAAdvanced DIRECT Tax Laws50%BInternational Taxation30%CTax Practice and Procedures20%C 20%B 30%A 50%ASSESSMENT STRATEGYT here will be wirtten examination paper of three To gain knowledge about the DIRECT and INTERNATIONAL tax laws in force for the relevant rules and principles emerging from leading cases, to provide and insight into practical aspects and apply the provisions of laws to various situations :Learning AimsThe syllabus aims to test the student s ability to : Tax planning and management under DIRECT Tax Explain case laws governing core provisions of the above Acts Explain tax assessment for various assessees and return filing procedures Expalin powers of various assessing authorities Explain INTERNATIONAL TAXATION and other relevant issuesSkill sets requiredLevel C : Requiring skill levels of knowledge, comprehension, application and analysis, synthesis and A: advance DIRECT Tax laws [50 Marks]50%1.

3 Assessment of income and Computation of tax liability of Various Entities2. Tax Management, Return and Assessment Procedure3. Grievance Redressal4. Penalties and Prosecutions5. Business Restructuring6. Different aspect of Tax planning7. CBDT & Other Authorities8. E-commerce Transaction and liability in special cases9. Income Computation and Disclosure Standards (ICDS)10. Black Money Act, 2015 section B: INTERNATIONAL TAXATION [30 Marks]30%11. Double TAXATION and Avoidance Agreements [Sec. 90, 90A and 91]12. Transfer PricingSection C: Case Study Analysis [20 Marks]20%Paper 16 : DIRECT Tax laws and INTERNATIONAL TaxationSection A: advance DIRECT Tax laws [50 Marks]1.

4 Assessment of income and Computation of tax liability of Various Entities a. Individual including non-residentb. Companyc. Trustd. Mutual Association2. Tax Management, Return and Assessment Procedurea. Return of Incomeb. Assessment Procedurec. Interest and feesd. Survey, Search and Seizuree. Refund, demand and recovery3. Grievance Redressala. Appealb. Rectificationc. Revisiond. Settlement Commissione. advance Ruling4. Penalties and Prosecutions5. Business Restructuring a. Amalgamationb. Demergerc. Slump saled.

5 Conversion of sole proprietary business to companye. Conversion of firm into companyf. Conversion of private limited company / unlisted public company into LLP6. Different aspect of Tax planning7. CBDT & Other Authorities8. E-commerce Transaction and liability in special cases9. Income Computation and Disclosure Standards (ICDS)10. Black Money Act, 2015a. Introduction to Black Money Actb. Highlights of Black Money ActSection B: INTERNATIONAL TAXATION [30 Marks]11. Double TAXATION and Avoidance Agreements [Sec. 90, 90A and 91]12.

6 Transfer Pricinga. Transfer Pricing including specified domestic transactionsb. Application of Generally Accepted Cost Accounting Principles and Techniques for determination of Arm s Length Pricec. advance Pricing Agreement Concept and Applicationd. Safe Harbour Rules & their capitalisationSection C: Case Study Analysis [20 Marks]ContentsSection A - advance DIRECT Tax LawsSTUDY NOTE 1 : ASSESSMENT OF VARIOUS Definations Tax on distributed income to unit holders [Sec. 115R] Tax on income from Securitisation Trusts [Sec.]

7 115 TCA] Tax on income of unit holder and business trust [Sec. 115UA] Tax on income of investment fund and its unit holders [Sec. 115UB] Tax on income from Patent [Sec. 115 BBF] Tax on income from transfer of carbon credits [Sec. 115 BBG] Religious or Charitable Trust Local Authority Mutual Concern 37 STUDY NOTE 2 : NON Computation of income on presumptive basis Capital gain on transfer of shares / debentures by a non-resident [First proviso to Sec. 48 and rule 115A] TDS on payment to non-resident sportsman or sports associations [Sec.

8 194E] TDS on interest from Infrastructure Debt Fund [Sec. 194LB] TDS on certain income from units of a Business Trust [Sec. 194 LBA] TDS on income of units of Investment Fund [Sec. 194 LBB] TDS on income from Investment in Securitization Fund [Sec. 194 LBC] TDS on interest to non-resident [Sec. 194LC] Income by way of interest on certain bonds, Govt. securities [Sec. 194LD] TDS on other sums payable to non-resident [Sec. 195] TDS on income from units [Sec. 196B] TDS on income from foreign currency bonds or GDR [Sec. 196C] TDS on income of FII from securities [Sec.

9 196D] Assessment of Trust 64 STUDY NOTE 3 : RETURNE OF Introduction Forms Return of income Mode of furnishing Income-tax Return Time limit for filing return of income [Explanation 2 to Sec. 139(1)] Fee for default in furnishing return of income [Sec. 234F] When a return of loss should be filed [Sec. 139(3)] Belated Return [Sec. 139(4)] Return of income of Charitable Trust [Sec. 139(4A)] Return of income of Political Party [Sec. 139(4B)] Return of income of scientific research association, etc. [Sec. 139(4C)] Return of income by a University/ College etc.

10 [Sec. 139(4D)] Return of income of a Business Trust [Sec. 139(4E)] Return of income of Investment Fund [Sec. 139(4F)] Revised Return [Sec. 139(5)] Defective Return [Sec. 139(9)] Verification of Return [Sec. 140] Quoting of Aadhaar number [Sec. 139AA] 76 STUDY NOTE 4 : ASSESSMENT Self-Assessment [Sec. 140A] Intimation or Assessment by Income tax department Inquiry before assessment Intimation / Assessment by Assessing Officer Intimation [Sec. 143(1)] Scrutiny Assessment u/s 143(3) Best Judgment Assessment [Sec.]