May 2013 IPCC exams are approaching nearer. In the light of several amendments and changes brought in by the Finance Act, 2012 and paradigm shift in Service tax law based on Negative List (i.e. selective approach to comprehensive approach), this article attempts to give overall view of syllabus, approach to be adopted and steps to be taken by the students pursuing IPCC with reference to the 4th paper i.e. Taxation.
Taxation Paper is one of the best scoring papers in the curriculum of CA course if one understands the subject thoroughly.
Particularly, IPCC Taxation is a blend of Direct taxes (50 Marks for Income Tax) and Indirect Taxes (50 Marks for VAT & 50 Marks for Service Tax).
This attempt is also significant to Students of PCC those who converted to IPCC (as PCC is discontinued) because the weightage of marks is different in PCC Taxation vis-à-vis IPCC Taxation.
[In PCC, VAT & Service tax is only for 25 Marks and Income Tax is for 75 marks. Therefore, old PCC students have to keep track of this change in weightage as in IPCC, VAT & Service Tax is for 50 Marks].
The following are the important points which have to be kept in mind before preparing for the exams and also give you the summary of the Announcements given by the BOS of ICAI:
1. The relevant Finance Act for May 2013 exams is Finance Act, 2012 for Income tax Subject. The relevant Assessment Year is 2013-2014. So, the provisions which are relevant to the A.Y.2013-14 are applicable for the coming examination.
2. Therefore, students have to carefully go through the series of amendments made the Finance Act, 2012 in Income Tax & Service Tax. The significant notifications and circulars issued upto 31st October, 2012 (income-tax and service tax) are also relevant.
3. The amendments by way of significant circulars and notifications in service tax issued between 1.5.2011 and 30.6.2012 are hosted at the BOS Knowledge Portal of ICAI Website.
4. The November 2012 edition of the Taxation Study Material is updated on the basis of the amendments made by the Finance Act, 2012 and significant notifications and circulars issued upto 30th June, 2012 which is the Study Material relevant for May, 2013 examination.
5. However, the significant notifications and circulars issued upto 31st October, 2012 are applicable for May 2013 examination.
6. The RTP for May 2013 recently released by ICAI contained the significant notifications and circulars issued between 01.05.2012 and 31.10.2012.
7. Please note that there were several amendments brought into force by the Finance Act, 2012 and ICAI had already released Supplementary Study Paper-2012 on TAXATION (Relevant for the students appearing for May, 2013 and November, 2013 examinations) which is an important source of all the amendments with suitable examples clearly explaining the amendments.
8. The relevant study material is the Study material issued for A.Y.2013-14. Study Material and Practice Manual of A.Y.2013-14 are applicable as per the announcement of BOS of ICAI.
9. While preparing, care is to be taken that the Material and Practice manuals are properly updated as above.
10. The new material issued by Board of Studies is updated as per the relevant Provisions i.e. A.Y.2013-14 applicable to your Exam.
11. All the publications mentioned above have been hosted at the BOS Knowledge Portal on the Institute’s website.
12. 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.
13. Level of knowledge required is Working Knowledge at IPCC level.
14. The Examination Committee of ICAI has decided that the following sections of the Finance Act, 1994/rules will be covered in the syllabus of Part II (Service tax and VAT) in Paper- 4: Taxation from May 2013 examination onwards.(Refer December 2012-CA Student journal)
a. Section 64: Extent, commencement and application
b. Point of Taxation Rules, 2011
c. Sections 65B: Interpretations (only relevant ones which would be required to explain the concepts included)
d. Section 66B: Charge of service tax on and after Finance Act, 2012
e. Section 66D: Negative list of services
f. Section 66F: Principles of interpretation of specified descriptions of services or bundled services.
g. Section 67A: Date of determination of rate of tax, value of taxable service and rate of exchange
However, the following topics pertaining to service tax law will not be included in the syllabus:
a. Section 66C: Determination of place of provision of service
b. Section 66E: Declared services;
c. Place of Provision of Service Rules, 2012;
d. Section 68(2) and Reverse Charge notification;
e. Export of Services vide rule 6A of the Service Tax Rules, 1994;
f. Mega exemption notification and other exemptions; and
g. Abatement notification.