Module : BLT 303: Taxation Law & Practice
Programme : B.Com
Credit Value : 12
Prerequisite : None
General
Objectives:
·
Familiarizing
students with the concepts of different taxation laws applied in Bhutan
·
Developing
skills in using tax Acts, Rules and Manuals to improve understanding in mechanical
application of variety of taxes
Learning Outcomes:
Upon successful completion of this module,
student should be able to:
·
explain
the concepts of taxation
·
explain
the historical developmental of Bhutanese Tax System
·
critically
analyze the administrative set up of income tax division- authorities, powers,
duties and functions
·
examine
various provisions with its underlying intention relating to- salary income;
rental income; interest income; cash crops income; dividend income; and income
from other sources
·
compute
taxable income and tax liability of individual tax payer
·
compute
taxable income and tax liability of corporate and business taxpayers
·
explain
and examine the provisions of managing and administering a tax - tax return;
assessment and audits; fines and penalties; settlement of disputes and appeal
CONTENT
Unit-
I: Introduction (10
Hours)
Introduction
to tax - Meaning of tax, features of tax, and objectives of tax;
Characteristics of a Good Taxation System; Element of Tax – tax base, tax rate
and taxpayer; Basic Concept of Taxation - previous year, assessment year,
income accrued v/s received, residential status, taxable incomes, deductible
incomes; Historical Development of Bhutanese Taxation System; Income Tax Law
and Rules – extent and application and definitions.
Unit - II: Personal Income Tax (15
Hours)
Introduction
and Basic Concepts – meaning of PIT, tax rates, persons liable to PIT,
residence of individual, taxation of minors, income subject to PIT, total adjusted
gross income; Computation of Income from - salaries, rental properties,
dividend, fixed deposits, cash crops and other sources, total income, specific
deductions, general deductions, net taxable income and tax liability of
individuals, set off and carry forward of losses; Preparation of Tax Returns
– manually and electronically.
Unit- III: Corporate and Business Income
Taxes (15 Hours)
Introduction
to Corporate/Business Income Tax – meaning of corporations/business, tax
liability of corporations/business, accounting treatment and taxable incomes;
Deductions - allowable deductions and depreciation allowance, business under
same ownership; Carry forward and Off-set of Losses; Valuation of
Stock-in-Trade and Filling of Tax Returns – manually.
Unit -IV: Tax Administration (10
Hours)
Administrative
set up of Income Tax Division - authorities, powers, duties and functions; Tax
Deducted at Source; Return and Assessment; Collection, Payment and Audits;
Recovery Measures; Fines and Penalties; Settlement of Disputes and Appeals –
appeal committee and Board, appeal procedures.
Unit -V: Bhutan Sales Tax, Customs and
Excise Duty (10 Hours)
Bhutan
Sales Tax - Introduction to Bhutan sales tax, BST at the point of entry,
exemption from Indian sales tax, BST of manufacturing raw materials, BST on
domestic goods and services, tax refunds; administrative provisions; Customs
and Excise Duty – introduction, procedures and practices, administrative
provisions.
Teaching strategies
·
Lectures
·
Tutorials
·
Presentations
and Projects.
Assessment
·
Assignment
20 %
·
Mid-Semester
Exam 30 %
·
End-Semester
Exam 50 %
Total 100 %
Essential Texts
- The Course Pack (Gaeddu
College of Business Studies)
- The Income Tax Act of the Kingdom of
Bhutan 2001.
- The Rules on the Income Tax Act of
the Kingdom of Bhutan, 2001 (5th edition
2005), DRC, Ministry of Finance, Royal Government of Bhutan.
References
- Singhania, V.K and Singhania, M. Students
Guide to Income Tax (latest edition).
- Ahuja, Girish, and Ravi Gupta, Corporate
Tax Planning and Management, Delhi, Bharat Law House.
- Pagare, Dinkar, Direct Tax
Planning and Management, New Delhi; Sultan Chand and Sons.