CS (Company Secretary) Tax Laws and Practice Syllabus

What is the basic corporate tax rate for a domestic company opting under Section 115BAA?

22% (plus surcharge and cess), with the condition that the company forgoes specified exemptions/deductions and additional depreciation.

What is Minimum Alternate Tax (MAT) and on what is it levied?

MAT under Section 115JB is levied at 15% (plus surcharge and cess) on the 'book profit' of a company to ensure companies with profits but low taxable income still pay a minimum tax.

What is MAT credit and how long can it be carried forward?

MAT credit is the excess of MAT paid over normal tax liability; it can be carried forward and set off against normal tax for up to 15 assessment years.

What is Dividend Distribution Tax (DDT) status currently?

DDT has been abolished; dividends are now taxable in the hands of shareholders at applicable rates, and companies deduct TDS on dividend payments.

What type of tax is GST and what does its 'destination-based' nature mean?

GST is a comprehensive, multi-stage, value-added indirect tax on supply of goods and services; destination-based means tax accrues to the State where goods/services are consumed, not produced.

What are the components of GST in India?

CGST (Central GST) and SGST/UTGST (State/Union Territory GST) on intra-state supplies, and IGST (Integrated GST) on inter-state supplies and imports.

Which major indirect taxes were subsumed into GST?

Central Excise Duty, Service Tax, Additional Customs Duties (CVD/SAD), State VAT, Central Sales Tax, Entry Tax, Luxury Tax, Entertainment Tax, and Purchase Tax.

What are the GST rate slabs commonly applied to goods and services?

The principal slabs are 0% (exempt), 5%, 12%, 18%, and 28%, with special rates for items like gold and a cess on certain demerit/luxury goods.

What is 'supply' under GST and what are its key components?

Supply under Section 7 includes all forms of supply of goods/services (sale, transfer, barter, exchange, licence, rental, lease, disposal) made for consideration in the course or furtherance of business; certain activities are supply even without consideration (Schedule I).

What is the difference between a 'composite supply' and a 'mixed supply' under GST?

A composite supply consists of naturally bundled goods/services with a principal supply (taxed at the principal supply's rate); a mixed supply is two or more independent supplies sold together for a single price (taxed at the highest applicable rate).

What is the 'Reverse Charge Mechanism' (RCM) under GST?

A mechanism where the recipient of goods/services, instead of the supplier, is liable to pay GST to the government on notified supplies or supplies from unregistered persons.

What is the GST registration turnover threshold for goods suppliers (normal category states)?

Rs. 40 lakh aggregate turnover for goods suppliers (Rs. 20 lakh for services; Rs. 20 lakh / Rs. 10 lakh respectively for special category states).

What is the GST Composition Scheme and its key limitation?

A scheme for small taxpayers (turnover up to Rs. 1.5 crore) to pay GST at a low fixed rate on turnover with simplified compliance; they cannot collect tax from customers or claim Input Tax Credit, and cannot make inter-state outward supplies.

Give two examples of activities treated as neither supply of goods nor services under GST (Schedule III).

Services by an employee to employer in the course of employment; sale of land; sale of completed building; services by courts/tribunals; functions performed by MPs/MLAs.

What is the value of supply under GST as per Section 15?

The transaction value — the price actually paid or payable for the supply where supplier and recipient are unrelated and price is the sole consideration; it includes taxes (other than GST), incidental expenses, and certain subsidies, excluding discounts known at/before supply.

What is the 'time of supply' of goods under forward charge?

The earlier of the date of issue of invoice (or last date it should be issued) and the date of receipt of payment.

How is the 'place of supply' determined for goods where supply involves movement?

The place of supply is the location of the goods at the time the movement terminates for delivery to the recipient.

How is place of supply determined for services supplied to a registered person (B2B)?

The location of the registered recipient is the place of supply (default rule under Section 12).

What is Input Tax Credit (ITC) under GST?

Credit of GST paid on inward supplies (inputs, input services, capital goods) used in the course/furtherance of business, which can be set off against output GST liability.

What are the key conditions for availing ITC under Section 16?

Possession of a valid tax invoice; receipt of goods/services; the supplier has paid the tax to government; the recipient has filed the return; and (for credit) the supply appears in GSTR-2B; payment to supplier within 180 days.

List two items on which ITC is blocked under Section 17(5).

Motor vehicles (with exceptions), food and beverages, club/health/fitness membership, works contract services for immovable property (with exceptions), and goods/services used for personal consumption.

What is the order of utilisation of IGST, CGST, and SGST credit?

IGST credit must be fully utilised first (against IGST, then CGST/SGST in any order); CGST credit cannot be used against SGST and vice versa; CGST is used for CGST then IGST, SGST for SGST then IGST.

What are GSTR-1, GSTR-3B, and GSTR-9?

GSTR-1 is the monthly/quarterly statement of outward supplies; GSTR-3B is the monthly summary return for paying tax; GSTR-9 is the annual return consolidating the year's transactions.

What is the basis of levy of customs duty in India?

Customs duty is levied under the Customs Act, 1962 on goods imported into or exported from India; the taxable event is import (when goods cross customs barriers) or export.

What is 'Basic Customs Duty' (BCD) and on what value is it computed?

BCD is the primary customs duty levied as a percentage of the assessable value of imported goods, determined as per Customs Valuation (transaction value of imported goods, generally CIF based).

What is IGST in the context of customs/imports?

IGST is levied on imported goods in addition to Basic Customs Duty, computed on the value of goods plus BCD and other duties; this IGST is available as input tax credit to the importer.

Distinguish between tax planning, tax avoidance, and tax evasion.

Tax planning is arranging affairs within the law to minimise tax (legal and legitimate); tax avoidance uses legal loopholes against legislative intent (legal but discouraged); tax evasion is illegal concealment/misreporting of income (punishable).

What is GAAR under the Income-tax Act?

General Anti-Avoidance Rules empower tax authorities to declare an arrangement an 'impermissible avoidance arrangement' (lacking commercial substance, entered mainly for tax benefit) and deny the tax benefit.

What is the appellate hierarchy under the Income-tax Act?

Commissioner (Appeals) / JCIT(A) -> Income Tax Appellate Tribunal (ITAT) -> High Court (on substantial question of law) -> Supreme Court.

What is the appellate hierarchy under GST?

Adjudicating Authority -> Appellate Authority -> GST Appellate Tribunal (GSTAT) -> High Court -> Supreme Court.

What is the penalty under Section 270A of the Income-tax Act for under-reporting and misreporting of income?

50% of the tax payable on under-reported income for under-reporting, and 200% of the tax payable for misreporting of income.