Complete Syllabus of Corporate Taxation | ACC 685 | MBS 4th semester

Credits: 3 

Lecture Hours: 48 

Course Objectives:

This course aims to provide the students with the knowledge of tax laws and tax planning for decision making and enable them to work as tax consultants in the corporate sector and tax officers in the government sector. 

Course Description:

This course includes income tax, value added tax system and procedures in Nepal. It also covers tax planning concept and its uses in Nepal. 

Course Details:

Unit 1: Conceptual Foundation LH 4 

Meaning and concept of tax, burden shifting, characteristics and types of tax, Sources of financing in Nepal, Composition of tax revenue in Nepal. Historical development of tax laws in Nepal. Definition of related terms. 

Unit 2: Income Tax LH 15 

Sources of income, tax exempted income, tax exempted institutions, tax rates, tax exemptions, tax rebates, treatment of provisions related to deductions and reductions, tax deduction at source and its treatment, types of assessment, computation of assessable income, taxable income and tax liability under business and investment, set off and carry forward of losses, capital gain tax, inter-source and inter-head adjustments-within country and outside country. 

Unit 3: Value Added Tax (VAT) LH 8 

Meaning and concepts of VAT, Evolution of VAT, Concepts of cascading effect and zero rating, Methods of VAT, Advantages of tax-credit method, Taxable transactions, Tax exempted transactions, VAT accounting, Tax registration, Tax collection, Tax invoice, VAT refund, Duties of businessmen and customers in VAT system, 

Unit 4: Revenue Administration LH 4 

Structure of revenue administration in Nepal: Ministry of Finance, Inland Revenue Department, Revenue Investigation Department. Method of tax collection and realization, Rights and duties of tax authorities and assessee, Advance ruling, Fines and penalties for breach of rules, Review and appeal under Income Tax and Value Added Tax Acts and Rules 

Unit 5: Tax Planning LH 4 

Basic concept of tax planning, needs and objectives of tax planning to modern business corporations, Major differences among tax evasion, tax avoidance and tax planning, types of tax planning, scopes of short-range tax planning, scopes of long-range tax planning, concepts of tax management. 

Unit 6: Tax Planning for Business Decisions LH 8 

Tax planning for managerial decisions: Selection of business, forms of business incorporation, location of business unit, size of business, timing of future business activities; Tax planning for financial decisions; leasing or buying business assets, capital structure, retention or distribution or returns, merging of business units. 

Unit 7: International Aspects of Taxation LH 3 

Taxation of non-resident (service providers) related to shipping, airlines, transport, and telecommunication, concepts of double taxation, avoidance of double taxation, foreign tax credit. 

Unit 8: Contribution of Income Tax and Value added tax LH 2 

Contribution of income tax and value added tax to total revenue and tax revenue of Nepal. 

Basic References: 

Nepal Government. Budget Speech and Finance Act (Recent) 

Nepal Government. Double Taxation Avoidance Treaties with various countries 

Nepal Government. Income Tax Act 2058 with amendments. Kathmandu: Ministry of Law, Justice and Constituent Assembly 

Nepal Government. Income Tax Rules 2059 with amendments. Kathmandu: Ministry of Law, Justice and Constituent Assembly 

Nepal Government. Value Added Tax Act 2052 with amendments. Kathmandu: Ministry of Law, Justice and Constituent Assembly 

Nepal Government. Value Added Tax Rules 2053 with amendments. Kathmandu: Ministry of Law, Justice and Constituent Assembly 

Supplementary Readings:

Dhakal, K.D., Bhattarai, I, Koirala, G.P., and Bhattarai, R. Corporate Taxation with Tax Planning (Updated Edition). Kathmandu: Asmita Publication 

Khadka, R. VAT in Nepal. (New Edition), New Delhi: UBS Publisher Distributors Ltd. 

Lekhi, R.K. Public Finance. (New Edition), New Delhi: Kalyani Pbulishers 

Prasad, B. Direct Taxes: Laws and Practice (Updated Edition). New Delhi: Vishwa Prakashan. 

Singhaniya, V.K. Direct Taxes: Laws and Practice (Updated Edition). New Delhi: Taxman Publication Pvt. Ltd.