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Taxation - An exam oriented analysis


CA Siva Kishore 
posted on 02 October 2010



IPCC-Taxation (4TH Paper) -An exam oriented analysis

 

The examination schedule for November 2010 is out. November examinations are approaching very fastly. In the light of the forthcoming examinations that are going to be held in November this year, this article attempts to summarise the steps to be taken and tips to be followed by the students of IPCC to go for the Taxation Exam with Confidence.

 

Taxation Paper is one of the Best Scoring papers of the entire curriculum. Some students are having an apprehension that Taxation is just theoretical paper. To excel in the taxation Paper, one must know the practical application of the theoretical provisions he learnt. Its not just the theory which helps a student to get good marks but it is the Practical Application of the theory i.e. relevant provisions of tax laws.

 

Taxation is the 4th paper in First Group of IPCC. The syllabus is designed in such a way keeping in mind the expectation of the knowledge by ICAI from the students before they join articles as well as the time constraints of the IPCC Student. This paper will give all the essential knowledge that a student require so far as the Direct and Indirect tax systems are concerned.  It consists of 3 Parts. Income Tax is for 50 Marks (Part I as per study material) and VAT and Service tax are for 25 Marks each respectively (Part II as per study material). This gives equal weightage to both Direct and Indirect tax laws and will place the students in a comfortable situation to make them ready for accepting the challenges posed by GST.

 

If the students plan well and prepare in an organised manner, the Students can make this paper as the Best Scoring Paper. The following points merit consideration for those appearing for IPCC Examination vis-a-vis Taxation paper:

 

Have a detailed understanding of the Syllabus and expectation from the Student as per the Study material issued by the ICAI. The paper like Taxation requires conceptual knowledge of the relevant tax laws duly updated and hence the student must identify the Finance Act and the relevant provisions which are applicable for the relevant attempt of examination.

 

As per the study material, if new legislations are enacted in place of the existing legislations the syllabus will accordingly include the corresponding provisions of such new legislations in the place of the existing legislations with effect from the date to be notified by the Institute. So, the following points should be kept in mind.

 

o Income Tax: For the students who are going to appear in the IPCC examination to be conducted in November, 2010, the amendments made by the Finance (No.2) Act, 2009 are applicable. So, the provisions which are relevant to the A.Y.2010-11 are applicable for the coming examination.

 

o Service Tax: The amendments brought into force by the Finance (No.2) Act, 2009 are relevant

 

o VAT: As per the syllabus of ICAI, Students shall not be examined with reference to any particular State VAT Law.  

 

The new material issued by Board of Studies is updated as per the relevant Provisions i.e. A.Y.2010-11 applicable to your Exam. Level of knowledge required is Working Knowledge.

 

Stick on to your syllabus and start reading the material concentrating on the Basics first. Understand practical implication of each provision and solve the practical questions at the end of each chapter. Compliment your studies by reference to the Bare Act and one of the recommended books by ICAI.

 

Regularly refer to the Student Journal i.e. The Chartered Accountant Student for getting yourself updated

 

After the end of each chapter, try to write important points [GIST] which will summarise the concept.

 

In addition to the illustrations given in your Study material, do the Practical problems by referring to one of the recommended books of ICAI.

 

Solve the Past examination questions. But make sure that they should be understood and solved taking into account the relevant provisions applicable to your attempt i.e.A.Y.2010-11 for the coming examination.

 

Regular practice with thorough understanding of provisions will help a student to attempt and complete the examination within the time frame of 3 hours. Practice the Questions at your home for your self-assessment exactly adhering to the exam time permitted.

 

Board of Studies of ICAI is providing wonderful inputs to the students through regular updating of Study Material and Compilations, RTPs etc., and students can make the best use of these materials. Some of the following steps taken by the Board of Studies is really helpful to students and hence make use of the following:

 

1. The Institute Material issued by the Board of Studies of ICAI is updated as per the relevant provisions i.e. the provisions relevant to the A.Y.2010-11 applicable for the November, 2010 Exam and all the recent amendments are given in Italics for the attention of the students. The recent amendments brought into force carry more weightage for marks in the examination.

 

2. Refer Compilation of Suggested answers (Though it is for PCC-Relevant for IPCC also) recently issued by Board of Studies which is recently amended and the past examination questions are answered chapter wise as per the provisions relevant to the A.Y.2010-11.

 

3. Supplementary study material 2009 issued every year by Board of Studies is another publication which will enable the students to get abreast of the latest amendments in Tax laws applicable to their attempt of examination. With the help of this publication, they can have their material updated.

 

4. Students should keep in mind that the Notifications/Circulars issued up to 30th April, 2010 are only relevant for November 2010 examination.

 

5. The following announcements issued by Board of Studies are very important for the students appearing in the November 2010 attempt:

 

a. New Perquisite Valuation rules have been notified and they are applicable for November 2010 examination.

 

b. For students appearing in November 2010 examination, the amendments made by the Finance (No.2) Act, 2009, as applicable for assessment year 2010-11 are relevant.

 

c. Therefore, the amendments made by the Finance (No.2) Act, 2009 which are not applicable for A.Y.2010-11 would not be relevant for students appearing for November 2010 examinations of PCC or Integrated Professional Competence Course.

 

d. Accordingly, the amendments made by the Finance (No.2) Act, 2009 in sections 44AA, 44AB, 44AD, 44AE and 44AF of the Income-tax Act, 1961 would not be applicable for the students appearing for the Taxation papers in November 2010 examination, since these amendments are effective only from A.Y.2011-12.

 

e. It is clarified that in Part II : Service tax and VAT of Paper 4: Taxation, students will be examined only in respect of the following taxable services:

 

1. Legal consultancy services

 

2. Mandap keepers services 

 

3. Commercial training or coaching services 

 

4. Information technology software services 

 

5. Services in respect of membership of clubs or associations

 

6. Refer immediate previous exam Suggested Answer and Revision Test paper relevant for November 2010 examination released by the Board of Studies.

 

As stated above, Board of studies is also continuously striving to provide the best resources to the students of ICAI to enable them to get update of latest changes and thereby excel in the examinations. Make best use of them.

 

Finally Students should remember that knowing is not enough and application is important to make their dreams of success come true. There is not any secret behind the success except hard work (in fact, SMART WORK). The success mantra is Conceptual understanding of provisions, Clarity in subject, Consistency in Studies, Creativity in preparation, Comprehensive coverage, Constant updating, Continuous practice, Common importance to all topics, Command over the subject and Confidence in the exam.

 

Remember: A tax provision a day keeps the exam fear away. Wishing all the students grand success in the coming examinations. Have a happy reading of Tax Provisions.

 

CA Siva Kishore Dintakurthi M.com., A.C.A.


Published in Students
Source : Own Contribution
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