Course Catalogue

          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 Appealsappeal 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

  1. The Course Pack  (Gaeddu College of Business Studies)
  2. The Income Tax Act of the Kingdom of Bhutan 2001.
  3. 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

  1. Singhania, V.K and Singhania, M. Students Guide to Income Tax (latest edition).
  2. Ahuja, Girish, and Ravi Gupta, Corporate Tax Planning and Management, Delhi, Bharat Law House.
  3. Pagare, Dinkar, Direct Tax Planning and Management, New Delhi; Sultan Chand and Sons.