LEARN BUSINESS

TAXATION KHATA
BUSINESS ACADEMY
COURSE SYLLABUS

Tax Rates for Cooperatives

Calculation of Taxable Income Discussion on the tax rate for co-operatives which is
15%, 10%, and 7.5% according to the location.
Taxable Income: Discussion on Taxable Income which
is the net income of a business in which tax is Set-Off & Carry Forward of Losses: Discussion on the
calculated. loss incurred by business (carried forward for 7 years.)

Person/ Government
A compulsory Inclusion in Income: Amounts included in the Income
Business
contribution of
wealth of a Business are: Installment and Annual Tax
1. Income from Trading Stock.
2. Income from the service fee.
Tax Installment Tax & Estimated Return:
3. Gain on disposal of Assets.
4. Gift received in respect of the business. Discussion on Installment Tax paid within Poush, Chaitra
5. Accepting business restrictions. & Ashad end with their rates. Filing of Estimated tax
6. Interest rate lower than the market rate. return (within poush End) & Exemption to file.

Income Tax Allowable Expense: Discussion on Expenses that are

Failure to Comply with ETR:
Discussion on fee to the businesses who didn't file ETR
allowed by the Income Tax act to deduct. They are:
Introduction to Income Tax 1. Interest Expense
and under-estimate Installment Tax i.e for Poush,
Chaitra and Ashad end @ 15% of interest.
Introduction: Tax is a compulsory contribution of 2. Cost of Trading Stock
wealth levied upon persons or a business. 3. Depreciation Expense Annual Tax Liability and Return
4. Repair and Improvement Expense Discussion on Annual Tax Liability and Return, its due
Types of Taxes: Discussion on two types of taxes. i.e. 5. Pollution Control Cost date, its types, place of payment and method of
Direct Tax and Indirect Tax. 6. Research and Development Cost payment.
7. General Expense
Taxation Glossary: Consists of different terms used in Failure to Submit Return and Pay Tax
taxation and its meaning. Expenses Not Allowed: These are the Expenses
Fails to maintain account: 0.1% of turnover or Rs. 1000
which are not deducted while computing business,
Governing Body and Acts: Tax is governed by Delay in submission: 2.5% of TDS amount.
employment, or investment income.
Income Tax Act and IRD work as the administrator. Fail to submit a return: Rs.100 or 0.1% of turnover.
VAT Act, Excise Act, Customs Act govern other taxes. Reduction from Income Tax: Discussion on other Fail to Pay Tax: 15% p.a of the shortfall amount.
expenses that are not related to business activities, like
Income Year: Discussion on Income Year(1st Shrawan
Prime Minister Relief Fund, Donations to exempt Tax Clearance Certificate: Concept of Tax Clearance
- 31st Ashad) its importance and conditions where
entities, etc. Certificate that is provided after paying all taxes like
the income year is less than 12 months.
VAT, TDS, Income Tax. Its process and criteria.

Tax Exempt Organization: Introduction on the tax-

Rate of Taxation
Tax Refund: Concept of Tax Refund, Application to be
exempt organization (Whose income is exempt from
filed for Tax Return, Time Limit to file such application.
tax), criteria, and conditions to fulfill. Rate @ 20%: Applicability of tax rate for the entities
like schools, high schools operated under public guthi,
Tax Registration agricultural businesses, special industries are discussed
for which tax rate is @ 20%. Fees, Punishment and Offences
Personal PAN: Discussion on Personal PAN which is
Rate @ 30%: Applicability of tax rate for the entities
compulsory for earning income from employment. Fines and Punishment:
making high profits like bank, insurance, etc
Discussion on fines & punishment for false/misleading
Business PAN: Discussion on Business PAN which is are discussed for which tax rate is @ 30%.
information due to mistake/ errors or due to fraud
compulsory for private firms, and different companies.
Rate @ 25%: Applicability of tax rate for every other i.e. 50% or 100% of underpayment of tax.
business are discussed for which tax rate is @ 25%.
Taxation for different Business Tax Recovery: Discussion on tax recovery through
auction, how to use auction proceeds.
Business Concession: Concession given to different
Presumptive Tax Payers (D-01): Discussion on Tax businesses like agriculture, special industry, startup,
Payers who pays tax on the fixed amount i.e. 7500, Tourism Industry, Manufacturing Industry are discussed.
4000, 2500 as per the location. (Concession of 75%) Miscellaneous
Tax on Sale of Land & Building:
Turnover Based Taxpayer (D-02): Discussion on Tax Discussion on rate of Taxation during the sale of land Basis of Accounting:
payers who pays tax at different rates i.e. 0.25%, 1%, and buildings, i.e. 5% or 7.5 % as per ownership period. The two basis of accounting are discussed. They
2% on the basis of their turnover. (Concession of 50%) are Cash Basis and Accrual Basis.

Tax on Sale of Securities:

Other Tax Payers (D-03): Discussion on Tax Payer Discussion on the rate of taxation on sales of securities Change in Control:
other than those discussed above who pay tax on of listed and unlisted companies for different persons in Concept of change in control, effect of change in control,
either slab rate or fixed rate of 20%, 25% or 30%. which tax rate is 5%, 7.5%, 10%, 15%, and 25%. and calculation of Tax Liability are discussed.

Page 1 of 2
 KHATA
BUSINESS ACADEMY

TDS Rates Taxable Value: Discussion on taxable value in which tax

Transaction > 50 Lakhs
(In last 12 months) is imposed and taxable value in different circum-
Dealing with stances like barter, self-supply, part consideration, etc.
sale of goods
Salary Services

Input and Output VAT

Slab rate 1.5% or 15% Transaction > 20 Lakhs
Dealing with (In last 12 months)
Compulsory sale of service
Registration
Introduction: Discussion on VAT Input (VAT is paid during
Transaction > 20 Lakhs
Transport Dealing with sale purchase) and VAT Output (VAT is collected during sales)
Rent & Lease of both goods
(In last 12 months)
10% 2.5% and services. and its illustration.

Calculation of VAT: Concept on how to calculate VAT

during import of goods/ import of service/under-invoicing.
Tax Deducted at Source (TDS) Value Addded Tax (VAT)
Tax Invoices
Introduction to TDS Introduction to VAT
Introduction: Discussion on different types of invoices
Introduction: Discussion on VAT that is levied at each i.e Normal Tax Invoices & Abbreviated Tax Invoice and
Introduction: Discussion on TDS that is withheld when a
certain payment like salary, commission, etc made stage of the supply chain where value is added. VAT Invoices during purchase/ sales and electronic
& its principle. billing.

Calculation of TDS: Discussion on the calculation of TDS VAT Registration for Business Debit and Credit Note: Discussion on Debit Note
and Credit Note and when it is issued.
for different services like:
Rent: 10% on Rent Amount PAN Registration v/s VAT Registration:
Transportation: 2.5% on Transportation Charge Discussion on who should obtain PAN certificate or VAT VAT Account: Discussion on VAT account and how to
Commission: 15% on Commission certificate. maintain purchase/ sales register.
Dividend: 5% on the Dividend
Contract: 5% on Contract Amount if a payment is more Criteria for VAT Registration: Tax Credit
than 50 lakhs at a time. Discussion on compulsory permanent registration of VAT
1.5% on the Contract amount if a payment is more than i.e. dealing with sales of goods (transaction> 50
Input Tax Credit: Discussion on input tax credit and its
50 lakhs in moving 11 days. lakhs in last 12 months), dealing with sale of service
Royalty: 15% on Royalty amount. types i.e. Full Tax Credit, Partial Tax Credit, No Tax
(transaction > 20 lakhs in last 12 months)
Credit, Proportionate Tax Credit, and other specific
Other Services: 15% if VAT Bill is not issued and
issues.
1.5% if VAT Bill is issued. VAT Registration Process:
Discussion on process of VAT Registration i.e. filing the
application, examination of application, issuance
TDS Deduction of Employees of VAT Registration Certificate. Filing and Payment of VAT

Inclusion in Income/ Income not Included: Compulsory Temporary Registration VAT Payment and Return: Discussion on VAT payment
Discussion on the amount that is included in income Discussion on Compulsory Temporary Registration (for and Return like how to file and when to file.
and that is not included in income. business participating in fair / exibition).
Tax Period: Discussion on Tax Period and its types i.e.
Quantification of Facilities: Voluntary Registration Monthly Tax period and Tri Annual Tax period.
Voluntary registration for those businesses which does
Quantification means measurement of facilities in
not fulfilling registration criteria but still want to register VAT Return Process: Discussion on the process of VAT
monetary term. Different measurement methods for
facilities like vehicle, accomodation, etc is discussed. in VAT. Return.

Registration Certificate & Tax Plate: Debit/ Credit Adjustment and VAT Refund: Discussion
Tax Calculation of Employees:
Discussion on registration certificate and its usage along on debit/ credit adjustment (adjustment made to correct
Discussion on tax calculation for employees by
with different tax plates to be fixed in office. previous year's mistake) and VAT Refund.
calculating the annual income and using slab rate
(from 1% to 36%).
Fine & Penalties:
Discussion on fine & penalties who fails to register, Miscellaneous
display & fix tax plate i.e 20000, 1000, 2000.

E-TDS Return and Payment Cancellation of Registration: Marked Price to be VAT inclusive:
Discussion on the reason for cancellation, and process Discussion on provision about marked price to be shown
of cancellation. with VAT & Service Charge included in it.(eg.restro menu)
E-TDS Return Introduction: Discussion on E- TDS
Return which is filed electronically that contains
information regarding the deduction of TDS and its Relation with Income Tax:
filing process. VAT Attractive and VAT Exempt Discussion on relation of VAT with Income Tax.

Payment of TDS: Items Preparation of VAT Reco:

Discussion on Due date for the payment of TDS Discussion on how to prepare VAT reco if any invoice
(25th of next month), process of payment and Introduction: Discussion on VAT Attractive (in which VAT from previous year is not included in VAT return.
methods for payment of TDS. is paid/ charged) and VAT Exempt Items (in which
VAT is not paid/ charged) and items in schedule 1 (the Prepartion of Annex 13:
Adjustment with Income Tax and Concept of schedule where all the VAT-exempt goods and services Discussion on how and why to prepare Annex 13.
Final Withholding Tax: are listed.

Final Withholding Tax is the tax paid in advance that Tax Officer & Collection of VAT in Arrears:
Exempt V/S Zero Rated Tax: Discussion on exempt
can not be adjusted in annual tax payment. Other Discussion on Tax officer/ right of tax officer and
and zero-rated tax in which VAT is not levied or VAT
advance taxes can be adjusted with income tax but collection of VAT in arrears i.e. collection from
Final Witholding Tax cannot be adjusted. is levied @ 0%. defaulter and collection from officers.

Page 2 of 2