Direct and Indirect Taxation - Law and Practice

CS Final : Group III :: Paper 8: [One paper: Three hours - 100 marks]

Level of Knowledge : Expert knowledge.

Objectives . . .

  1. To provide working knowledge of framework of taxation system in India.
  2. To provide thorough knowledge of various concepts and their application relating to direct tax laws with a view to integrating the relevance of these laws with financial planning and management decisions.
  3. To provide thorough knowledge of laws and practices of indirect taxes viz. central excise, services tax, customs and central sales tax in all aspects including tax planning and management.

Detailed Contents . . .

Part A: Direct Taxation - Law and Practice [40 Marks]

  1. General Framework of Direct Taxation in India
    Different direct tax laws and their inter-relationship in the scheme of taxation in India, importance of Income-tax Act and annual Finance Acts.
    • Constitutional provisions.
    • Distribution of taxation power between States and the Central Government.
    • Sharing of certain central taxes.
  2. Companies under Income-tax Laws
    Classification and tax incidence; corporation tax as per Article 366; computation of taxable income and assessment of tax liability considering special provisions relating to companies.
  3. Tax Planning
    Concept of tax planning
    • Tax planning with reference to setting up of a new business; locational aspects; nature of business; planning for tax holiday benefits, limitations on the tax planning exercise flexible planning premises; planning in the context of court rulings and legislative amendments.
    • Tax planning with regard to specific management decisions such as make or buy; own, lease or hire, etc.
    • Tax planning with reference to financial management decisions such as capital structure of a company and tax incidence; tax as a variable in computing cost of capital; tax considerations in dividend policy and bonus shares issue.
    • Tax planning in respect of non-resident company assessee.
    • Tax planning with respect to corporate reorganisation, i.e. amalgamation, merger, demerger and slump sale.
    • Double taxation avoidance agreements; general principles; provisions and tax implications thereof.
    • Tax planning with reference to employees remuneration.
    • Tax planning vis-a-vis important provisions of wealth-tax and court rulings and legislative amendments pertaining to wealth-tax.
  4. Advance Rulings
    Authority for advance rulings, its power and procedure; applicability of advance ruling; application for advance ruling and procedure on receipt of application.
  5. Tax Management
    Return and procedure for assessment; special procedure for assessment of search cases, liability in special cases; collection and recovery of tax; refunds, appeals and revisions; penalties imposable, offences and prosecution; other miscellaneous provisions.


  • Modern Law Publications, 8, Hastings Road (near High Court) Allahabad-211001
    1. Tax planning under Direct Taxes
      • Acharya Shuklenra & M.G. Gurtha
  • Tata MacGraw Hill Publishing Co. (P) Ltd., New Delhi
    1. Corporate Tax Planning
      • E.A. Srinivas
  • Orient Law House, Post Box No. 1094, Opp. High Court, Allahabad 211 101
    1. Corporate Taxation A Hand Book
      • H.P. Ranina
  • Bharat Law House Pvt. Ltd., T 1/95, Mangolpuri Industrial Area, Phase I, New Delhi - 110083
    1. Systematic Apaproach to Income Tax and Sales Tax
      • Girish Ahuja & Ravi Gupta
  • Bare Act ???
    1. Income Tax Act & Rules
    2. Wealth Tax Act & Rules


  • Bharat Publishing House, Allahabad.
    1. Law and Income Tax
      • A.C. Sampathy Iyengar
    2. Master Guide to Income Tax Act
      • Pradeep S. Shah & Rajesh S. Kadakia
  • Taxmann Publications, 59/32, New Rohtak Road, New Delhi - 110005
    1. Direct Taxes Law and Practice
      • DR. V.K. Singhania
  • Konark Publications (P) Ltd., A 14 % Main Marg, Delhi 110 092
    1. Direct Taxes
      • Dr. B.B. Lal


  • Company Law Institute of India (P) Ltd., Tyagraja Road, Chennai
    1. Income Tax Reports

Other Relevant Books

Part B: Indirect Taxation - Law and Practice [60 Marks]

  1. Introduction
    Special features of indirect tax levies - all pervasive nature, contribution to Government revenues; instrument of planning, development and fiscal performance; constitutional provisions authorising the levy and collection of duties of central excise, customs and central sales tax.
  2. Central Excise Laws
    Basis of chargeability of duties of central excise goods, manufacture, classification and valuation of excisable goods specific issues and case studies; assessment procedure (including Advance Rulings provisions), exemption, payment, recovery and refunds of duties.
    Clearance of excisable goods; clearances and procedures under SRP, including an overview of accounts, records and returns to be maintained/filed.
    Small scale units and applicable laws for duty payment purposes.
    Set-off of duties meaning, scheme of set off/input duty relief schemes; concepts under the Value Added Tax.
    Central Excise Concessions on exports - provisions and procedures.
    Search, seizure and Investigation provisions; offences and penalty provisions.
    Adjudication, Appellate and Revision provisions - law, procedures and practices including appearance before CEGAT by Company Secretary as an authorized representative.
    Provisions of law and procedure in respect of settlement of cases.
  3. Service Tax
    Provisions of law and procedures including its applicability to Company Secretaries in Practice.
  4. Customs Laws
    Levy of and exemption from customs duties - specific issues and case studies; assessment and payment of duties; recovery and refund of customs duties.
    Clearance of imported and exported goods procedure, including baggage and goods imported or exported by post and stores ; provisions relating to coastal goods and vessels carrying coastal goods. Drawback of customs duties law and procedure.
    Transportation and warehousing rules and regulations
    Confiscation of goods and conveyances and imposition of penalties; search, seizure and arrest, offences and prosecution provisions.
    Adjudication, Appellate and Revision provisions; Settlement of Cases provisions and procedures.
  5. Central Sales-tax Laws
    Inter-State sales, sales outside a State and sales in the course of import and export specific issues and case studies; taxability of inter-depot/inter-branch transfer of goods, concept of consignment tax and sales tax on works contracts; levy and collection of sales tax; adjudication and appeals; offences and penalties.
    Goods of special importance restrictions and conditions in regard to taxation thereof; liability of directors of a private limited company in liquidation.
  6. Promissory Estoppel in Fiscal Laws
    Principles and applicability with reference to indirect taxes.
  7. Tax Planning and Management
    Scope for tax planning and management in central excise, customs and central sales tax with specific reference to important issues in the respective areas.


Customs Laws

  • Centax Publications (P) Ltd., Defence Colony, New Delhi - 110003
    1. Customs Law Manual
      • R.K. Jain
    2. Customs Law & Procedures
      • S.P. Bhatnagar

Central Excise Laws

  • Centax Publications (P) Ltd., Defence Colony, New Delhi - 110003
    1. Central Excise Manual
      • R.K. Jain
    2. Central Excise Tariff
      • R.K. Jain
  • Wadhwa & Company, Nagpur
    1. Guide to Central Excise Law and Practice (Vol. I)
      • Arvind P. Datar
  • Modern Law Publications, Allahabad
    1. Central Excise Law and Procedure (Vol . I & II)
      • Acharya Shuklendra
    2. Excuse Guide to SSI

Central Sales Tax

  • Wadhwa & Company, Nagpur
    1. Central Sales Tax Laws (Vol. I & II)
      • K. Chaturvedi & P. Kothari
  • Anand Prakashan, Jaipur
    1. Law and Central Sales Tax in India
      • Jai Kumar Jain & Anand Jain

Books covering Customs, Central Excise and Central Sales Tax Laws

  • Taxmann Publications, New Delhi
    1. Indirect Taxes - Law and Practice
      • V.S. Datey
  • Sultan Chand & Sons, New Delhi
    1. Indirect Taxes
      • V. Balachandran
  • Ashoda publications, 52, Subash Nagar, Opp. B.N. College, Udaipur 313 001
    1. Central Excise and Customs
      • Harshad C. Chowdhry

* Students may use these books for general reading as these books cover all the three laws viz., customs, central Excise and Central sales Tax .


  • Law Publications, New Delhi
    1. Commentary on Customs act with Rules and Notifications
      • T.P. Mukherjee
  • Centrax Publications
    1. Customs Valuation Code
      • S.B. Sarkar
    2. Manufacture in Central Excise
      • S. Mukhopadhyay
    3. Words and Phrases of Excise and Customs
      • S.B. Sarkar
    4. Customs Valuation Law and Practice
      • S.D. Majumdar
  • Commercial Law Publishers (India) Pvt. Ltd., 151, Rajindra Market, Opp. Tis Hazari Court, Delhi - 110054
    1. Service Tax Ready Recknoner
      • R. Krishnan & R. Parthasarthy
    2. New Law relating to Valuation under Central Excise
      • V.S. Datey
    3. Central Excise Guide for Small Scale Industry
      • G. Sarangi


  • Centax Publications (P) Ltd., Defence Colony, New Delhi - 110003
    1. Excise Law Times (Fortnightly Reporting Journal)
  • Indirect Tax Laws of India (P) Ltd., Chennai.
    1. Excise and Customs Cases (Fortnightly Reporting Journal)
  • Census Publications, New Delhi
    1. Excise and Customs Reporters (Fortnightly Reporting Journal)
  • Commercial Laws of India (P) Ltd., Chennai
    1. Sales Tax Cases (Fortnightly Reporting Journal)

Other Relevant Books

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