Taxation and Auditing syllabus
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Taxation and Auditing
10 units
1 Introduction to Taxation (2 LHs)
2 Taxation of Income in Nepal (4 LHs)
- Historical background of evolution of income tax in Nepal
- Features of Income Tax Act, 2058
- Definition of basic terms under Income Tax Act
- Tax accounting and timing
- Classification and status of assesse (Taxpayers)
- Heads and sources of income
- Concepts of Presumptive taxation, Turnover taxation, Personal Income Tax (PIT),
5 Income from Business (10 LHs)
6 Income from Investment (4 LHs)
7 Total Assessable income tax liability and tax payable (3 LHs)
8 Tax Administration and Official Documentations (3 LHs)
- Tax authorities and their powers, rights and duties
- Rights and duties of a taxpayer
- Documentation, record keeping and information collection
- Income return and tax assessment
- Payment, collection (recovery/realization), remission, refund and set-off
- Provision of fees and interest
- Provision of penalties for offences
- Administrative review and appeal
9 Value Added Tax (5 LHs)
10 Auditing (6 LHs)
1. Introduction to Taxation (2 LHs)
- Meaning and objectives of tax
- Meaning and objectives of tax
- Classification of taxes
- Classification of taxes: direct and indirect tax with merits and demerits
- Canons of taxation.
2. Taxation of Income in Nepal (4 LHs)
- Historical background of evolution of income tax in Nepal
- Historical background of evolution of income tax in Nepal
- Features of Income Tax Act, 2058
- Features of Income Tax Act, 2058
- Definition of basic terms under Income Tax Act
- Definition of basic terms under Income Tax Act
- Tax accounting and timing
- Tax accounting and timing: accounting based on cash, accounting on accrual basis, quantification, allocation and characterization of amounts
- Classification and status of assesse (Taxpayers)
- Classification and status of assesse (Taxpayers): natural person and entity, resident and non-resident, single and couple
- Heads and sources of income
- Heads and sources of income: concepts, classification: income from employment, income from business, income from investment, casual gain, sources of incomes: domestic and foreign. Tax Act with other laws: Constitution, Tax Act, Tax rule, Finance Act, Legal precedents established by court
- Concepts of Presumptive taxation, Turnover taxation, Personal Income Tax (PIT),
- Concepts of Presumptive taxation, Turnover taxation, Personal Income Tax (PIT),
3. Income from Employment (9 LHs)
- Concept of employment
- Concept of employment, Features of employment income, Chargeable Income under the head of employment
- Non - taxable/non chargeable income
- Non - taxable/non chargeable income
- Valuation of perquisites
- Valuation of perquisites
- Allowable reduction
- Exemptions
- Tax credit
- Tax rate
- Computation of assessable income
- Computation of assessable income
- Taxable income
- Tax liabilities and payable
- Tax liabilities and payable.
4. Valuation of Stocks, and Depreciation (2 LHs)
- Methods of stock valuation, Adjustments of over and under valuation of stocks
- Methods of stock valuation, Adjustments of over and under valuation of stocks
- Calculation of cost of trading stocks
- Calculation of cost of trading stocks
- Assets pooling system of depreciation
- Assets pooling system of depreciation, Calculation of depreciation basis and allowable depreciation
- Provisions for unabsorbed pollution control cost
- Provisions for unabsorbed pollution control cost, research and development cost Provision for repairs and maintenance cost
- Provisions of additional depreciation allowance
- Provisions of additional depreciation allowance.
5. Income from Business (10 LHs)
- Concept of business income
- Concept of business income
- Concepts of capital and revenue incomes and expenses
- Concepts of capital and revenue incomes and expenses
- Chargeable and non-chargeable incomes from business
- Chargeable and non-chargeable incomes from business
- Deductible and non-deductible expenses
- Deductible and non-deductible expenses
- Assessable income from sole proprietorship business and profession other than entities
- Assessable income from sole proprietorship business and profession other than entities
- Set-off and Carry forward of business loss
- Set-off and Carry forward of business loss.
6. Income from Investment (4 LHs)
- Concept of investment income
- Concept of investment income
- Difference between investment and business
- Difference between investment and business
- Chargeable and non-chargeable incomes from investment
- Chargeable and non-chargeable incomes from investment
- Deductible expenses and non-deductible expenses
- Deductible expenses and non-deductible expenses
- Taxation on Capital Gain
- Taxation on Capital Gain: tax on gain on sale of shares and non-business, land and building
- Investment income from domestic sources and foreign sources
- Investment income from domestic sources and foreign sources
- Assessable income from investment
- Assessable income from investment, taxable income, Tax liability and tax payable for individual taxpayers other than entities. Set-off and carry-forward of investment losses
7. Total Assessable income tax liability and tax payable (3 LHs)
- Concepts of statement of total assessable income and taxable income
- Concepts of statement of total assessable income and taxable income
- Allowable reductions
- Allowable reductions: Exemption
- Progressive slab rates and flat rates
- Progressive slab rates and flat rates
- Tax credit
- Tax credit: Foreign tax credit, Medical tax credit
- Tax concessions
- Adjustments of advance tax
- Adjustments of advance tax
- Tax deduction at source (TDS)
- Tax deduction at source (TDS)
- Computation of total assessable income Taxable income and tax payable with sole…
- Computation of total assessable income Taxable income and tax payable with sole proprietorship business and profession other than entities.
8. Tax Administration and Official Documentations (3 LHs)
- Tax authorities and their powers, rights and duties
- Tax authorities and their powers, rights and duties
- Rights and duties of a taxpayer
- Rights and duties of a taxpayer
- Documentation, record keeping and information collection
- Documentation, record keeping and information collection
- Income return and tax assessment
- Income return and tax assessment
- Payment, collection (recovery/realization), remission, refund and set-off
- Payment, collection (recovery/realization), remission, refund and set-off
- Penal Provision
- Provision of fees and interest
- Provision of fees and interest
- Provision of penalties for offences
- Provision of penalties for offences
- Administrative review and appeal
- Administrative review and appeal.
9. Value Added Tax (5 LHs)
- Concept of value added tax (VAT)
- Concept of value added tax (VAT)
- Origin and evolution of VAT
- Origin and evolution of VAT
- Principle governing VAT
- Principle governing VAT
- Types of VAT
- Method of computing VAT
- Method of computing VAT
- Method of collection/realization and refund of VAT
- Method of collection/realization and refund of VAT
- Penalties and appeal
- Penalties and appeal
- Threshold limit and rate of VAT
- Threshold limit and rate of VAT
- Permanent Account Number and VAT number
- Permanent Account Number and VAT number
- Abbreviated invoice and VAT invoice
- Abbreviated invoice and VAT invoice.
10. Auditing (6 LHs)
- Meaning
- Meaning, scope, objectives and advantages of auditing, accounting, auditing and investigation, Errors and frauds: concepts, types, detection and prevention of errors and frauds, Concept of internal control: Internal auditing and internal check
- Basic concepts of audit plan
- Basic concepts of audit plan, vouching, verification and valuation. Concept, contents and types of audit report. Concept of tax audit.