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Taxation and Auditing syllabus

ACC 20410 units · 58 topicsAcademic year 2083/84
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Taxation and Auditing

10 units

1. Introduction to Taxation (2 LHs)

  1. Meaning and objectives of tax
    1. Meaning and objectives of tax
  2. Classification of taxes
    1. Classification of taxes: direct and indirect tax with merits and demerits
    2. Canons of taxation.

2. Taxation of Income in Nepal (4 LHs)

  1. Historical background of evolution of income tax in Nepal
    1. Historical background of evolution of income tax in Nepal
  2. Features of Income Tax Act, 2058
    1. Features of Income Tax Act, 2058
  3. Definition of basic terms under Income Tax Act
    1. Definition of basic terms under Income Tax Act
  4. Tax accounting and timing
    1. Tax accounting and timing: accounting based on cash, accounting on accrual basis, quantification, allocation and characterization of amounts
  5. Classification and status of assesse (Taxpayers)
    1. Classification and status of assesse (Taxpayers): natural person and entity, resident and non-resident, single and couple
  6. Heads and sources of income
    1. 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
  7. Concepts of Presumptive taxation, Turnover taxation, Personal Income Tax (PIT),
    1. Concepts of Presumptive taxation, Turnover taxation, Personal Income Tax (PIT),

3. Income from Employment (9 LHs)

  1. Concept of employment
    1. Concept of employment, Features of employment income, Chargeable Income under the head of employment
  2. Non - taxable/non chargeable income
    1. Non - taxable/non chargeable income
  3. Valuation of perquisites
    1. Valuation of perquisites
    2. Allowable reduction
    3. Exemptions
    4. Tax credit
    5. Tax rate
  4. Computation of assessable income
    1. Computation of assessable income
    2. Taxable income
  5. Tax liabilities and payable
    1. Tax liabilities and payable.

4. Valuation of Stocks, and Depreciation (2 LHs)

  1. Methods of stock valuation, Adjustments of over and under valuation of stocks
    1. Methods of stock valuation, Adjustments of over and under valuation of stocks
  2. Calculation of cost of trading stocks
    1. Calculation of cost of trading stocks
  3. Assets pooling system of depreciation
    1. Assets pooling system of depreciation, Calculation of depreciation basis and allowable depreciation
  4. Provisions for unabsorbed pollution control cost
    1. Provisions for unabsorbed pollution control cost, research and development cost Provision for repairs and maintenance cost
  5. Provisions of additional depreciation allowance
    1. Provisions of additional depreciation allowance.

5. Income from Business (10 LHs)

  1. Concept of business income
    1. Concept of business income
  2. Concepts of capital and revenue incomes and expenses
    1. Concepts of capital and revenue incomes and expenses
  3. Chargeable and non-chargeable incomes from business
    1. Chargeable and non-chargeable incomes from business
  4. Deductible and non-deductible expenses
    1. Deductible and non-deductible expenses
  5. Assessable income from sole proprietorship business and profession other than entities
    1. Assessable income from sole proprietorship business and profession other than entities
  6. Set-off and Carry forward of business loss
    1. Set-off and Carry forward of business loss.

6. Income from Investment (4 LHs)

  1. Concept of investment income
    1. Concept of investment income
  2. Difference between investment and business
    1. Difference between investment and business
  3. Chargeable and non-chargeable incomes from investment
    1. Chargeable and non-chargeable incomes from investment
  4. Deductible expenses and non-deductible expenses
    1. Deductible expenses and non-deductible expenses
  5. Taxation on Capital Gain
    1. Taxation on Capital Gain: tax on gain on sale of shares and non-business, land and building
  6. Investment income from domestic sources and foreign sources
    1. Investment income from domestic sources and foreign sources
  7. Assessable income from investment
    1. 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)

  1. Concepts of statement of total assessable income and taxable income
    1. Concepts of statement of total assessable income and taxable income
  2. Allowable reductions
    1. Allowable reductions: Exemption
  3. Progressive slab rates and flat rates
    1. Progressive slab rates and flat rates
  4. Tax credit
    1. Tax credit: Foreign tax credit, Medical tax credit
    2. Tax concessions
  5. Adjustments of advance tax
    1. Adjustments of advance tax
  6. Tax deduction at source (TDS)
    1. Tax deduction at source (TDS)
  7. Computation of total assessable income Taxable income and tax payable with sole…
    1. 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)

  1. Tax authorities and their powers, rights and duties
    1. Tax authorities and their powers, rights and duties
  2. Rights and duties of a taxpayer
    1. Rights and duties of a taxpayer
  3. Documentation, record keeping and information collection
    1. Documentation, record keeping and information collection
  4. Income return and tax assessment
    1. Income return and tax assessment
  5. Payment, collection (recovery/realization), remission, refund and set-off
    1. Payment, collection (recovery/realization), remission, refund and set-off
    2. Penal Provision
  6. Provision of fees and interest
    1. Provision of fees and interest
  7. Provision of penalties for offences
    1. Provision of penalties for offences
  8. Administrative review and appeal
    1. Administrative review and appeal.

9. Value Added Tax (5 LHs)

  1. Concept of value added tax (VAT)
    1. Concept of value added tax (VAT)
  2. Origin and evolution of VAT
    1. Origin and evolution of VAT
  3. Principle governing VAT
    1. Principle governing VAT
    2. Types of VAT
  4. Method of computing VAT
    1. Method of computing VAT
  5. Method of collection/realization and refund of VAT
    1. Method of collection/realization and refund of VAT
  6. Penalties and appeal
    1. Penalties and appeal
  7. Threshold limit and rate of VAT
    1. Threshold limit and rate of VAT
  8. Permanent Account Number and VAT number
    1. Permanent Account Number and VAT number
  9. Abbreviated invoice and VAT invoice
    1. Abbreviated invoice and VAT invoice.

10. Auditing (6 LHs)

  1. Meaning
    1. 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
  2. Basic concepts of audit plan
    1. Basic concepts of audit plan, vouching, verification and valuation. Concept, contents and types of audit report. Concept of tax audit.