Enlightened International Academy/CA Classes/ICAN/CAP-II Syllabus 2012

Detailed Syllabus of Chartered Accountancy Professional (CAP-II)

Paper 1: Advanced Accounting (One paper- Three hours-100 Marks)
1. Accounting Standards- Framework for the preparation and presentation of financial
statements as promulgated by Nepal Accounting Standards Board. Nepal Accounting Standard
issued by Nepal Accounting Standards board (made mandatory as well voluntary compliance
but not the exposure drafts). Historical cost concept vs. Realization concept for preparation and
presentation of financial statements. Effect of changes in price levels.
2. Accounting for Special Transactions ( higher level Practical problems for each of them)- lease,
hire purchase and installment transactions; goods on sale of return; contract accounts
investment accounts, branch ( including foreign branch ) and department accounts.
Computation of insurance claims for loss of stock and profit.
3. Preparation and presentation of financial statements for company
a. Accounting for share capital and reserve funds-n types of shares, issue of fresh shares,
bonus shares, right issue, redemption of redeemable preference shares , issue, redemption
and conversion of debenture and underwriting of shares and debentures.
b. Preparation of financial statements as per provision in Company Act, format and contents
as per the Act/Rules, interpretation of items in balance sheet and income statements.
c. Winding up of companies and accounting treatment arisen therefore- Statement of Affairs
and Liquidator's account. Additional disclosures and comment on going concern concept in
relations to winding up.
d. Concept of acquisition, absorptions, amalgamation, merger and reconstruction- Simple
practical problems.
e. Cash flow statements- objectives, preparation methods (direct and indirect) and
interpretations.
f. Application of Nepal Accounting Standards in the preparation of financial statements for
general purpose.
4. Partnership Accounts- Treatment of goodwill and profit sharing, admission, retirement and
death of partner (including annuity and policies method). Conversion of partnerships to a
limited company and merger of firms.
5. Preparation and presentation of financial statements of special organization
a. Financial Institution, including banks, finance companies and cooperatives- types of
financial instruments as per Banking and Financial Institutions Act, formats and contents
as prescribed by loan provisioning, capital adequacy and cash reserve requirement. Simple
practical problems.
b. Electricity companies- nature of operation ( generation, transmission and distribution),
transfer pricing and requirements as per Nepal Electricity Act. Simple practical problems.
c. Insurance Companies- nature of operation( life and general), formats and contents of
financial statements prescribed by Insurance Board, accounting and disclosure
requirements, premium income recognition, liability recognition and treatment of reinsurance. Simple practical problems.
d. Agriculture farm accounting- concept and peculiarity of inventory casting and valuation
system.
6. Incomplete Accounts- concept of incomplete records and generation of need for financial
information from other records, preparation of final financial statements from incomplete
records.
7. Government Accounting- concept and salient features of government and business accounting.
Simple practical problems. Framework of NPSAS.
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Enlightened International Academy/CA Classes/ICAN/CAP-II Syllabus 2012

8. Analysis and interpretation of financial statements

a. Evaluation of financial statements under Nepal Accounting Standards and other applicable
International financial Reporting Standards.
b. Segmental information analysis.
c. Analysis of performance and position through cash flow, ratios and trend.
d. Related party transactions disclosure and treatment.
Reference Books:
1. Nepal Accounting Standards (NAS)/ Nepal Public Sector Accounting Standards (NPSAS)
2. International Financial Reporting Standards( IFRS)
3. Advanced Accounting, R. L. Gupta & M. Radhaswamy, S. Chand & Son, New Delhi
4. Advance Accounting, H. Chakraborty, Oxford University press, Calcutta

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Enlightened International Academy/CA Classes/ICAN/CAP-II Syllabus 2012

Paper 2: Audit & Assurance (One Paper- Three hours-100 Marks)

Detailed Course Contents
1. Nature and Concept of Assurance
a. Principles of assurance
Concept of assurance
i. Benefits of assurance
ii. Purposes and characteristics of different forms of assurance
iii. Objectives of assurance; expression of opinion, detection and prevention of fraud and error
iv. Basic principals governing and assurance
v. Relationship of assurance with other subjects; internal audit and External audit; Auditing
and Investigation.
b. Regulatory and ethical issues
i. Scope and terms of an assurance engagement
ii. Scope and authority of professional pronouncements; code of ethics issued by Institute of
Chartered Accountants of Nepal, Code of ethics issued by IFAC and Nepal Standards on
Auditing develop and issued by Auditing Standards Board.
iii. Ethical and professional issues; integrity, objectivity, independence, confidentiality,
professional competence an due care and professional behavior.
iv. Quality control
v. Regularity framework: Companies Act, Bank and Finance Companies Related Act and
International Financial Reporting Standards and interpretations.
2. Planning an assurance engagement
i. Importance of knowledge and understanding of a business
ii. Application of analytical procedures
iii. Risk assessments
iv. Materiality, tolerable error, and sample sizes
v. Design and documentation of plan and program
vi. Co-ordinance and monitoring of the work
vii. Evaluation of internal control system.
viii. Transaction cycles (revenue, purchases, payroll, inventory expenditure)
ix. Communication with management and those charged with corporate governance.
x. Evaluation of financial statements assertions: assets, liabilities, income and expenditure,
including accounting estimates.
3. Gathering evidence during an assurance engagement
i.
Different methods of obtaining evidence
ii.
Identification and use of the methods for different business situation
iii. Reliability of different types of assurance evidence
iv. Identification of situation where analytical procedures, test of control and substantive
procedures are to be implied.
v.
Evidence from analytical procedures, test of control and substantive procedures
vi. Quantity and quality of evidence needed for reports.
vii. Written confirmation of representation from management.

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Enlightened International Academy/CA Classes/ICAN/CAP-II Syllabus 2012

viii. Audit of payment: General considerations, wages, capital expenditure, other payments and
expenses, petty cash, cash payments, audit of payments into and out of the bank,
reconciliation of banks statements with cash book
ix. Audit of receipts: General consideration, cash sales, receipt from debtors, other receipts
x.
Audit of purchases, vouching cash and credit purchases, forward purchases, purchases
returns.
xi. Audit of sales, cash and credit sales, goods on consignment, sale on approval basis, sales
under hire purchase agreement, returnable containers, various types of allowances given to
customers, sales return, sales ledger, sales ledger.
xii. Audit of suppliers ledger and debtors ledger: Self balancing and the sectional balancing
system, total or control accounts, loose leaf and card ledger, confirmatory statements from
credit customers and suppliers, provision for bad and doubtful debts, writing off of bad
debts.
xiii. Audit of impersonal ledger: Capital expenditure, deferred revenue expenditure and
revenue expenditure, outstanding expenses and income
xiv. Audit of assets and liabilities
xv. Audit of share capital and transfer of shares
xvi. Audit of incomplete records.
xvii. Audit of limited companies: Appointment of auditors, powers and duties of auditors.
xviii. Special points in audit of different types of undertakings i.e. educational institutions.
hotels, clubs, hospitals, hire purchase and leasing companies 9 excluding banks, electricity
companies, cooperative societies and insurance companies)
xix. Features and basis principles of government audit , local bodies and non governmental
organizations.
4. Completing and reporting on an assurance engagement
i. Subsequent events leading to adjustment or disclosure
ii. Evaluation of results of assurance tests and procedures
iii. Reports on assurance engagements consistent with results of assurance procedures
iv. Elements of assurance reports
v. Elements of auditor's reports and recommendations on the nature of an audit opinion
vi. Extracts for assurance reports
Reference Books:
1. Nepal Accounting Standards (NAS)
2. Nepal Standards on Auditing Standards (IFRS)
3. International Financial Reporting Standards (IFRS)
4. Contemporary Auditing, Kamal Gupta- Tata McGraw Hill Publishing Co

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Enlightened International Academy/CA Classes/ICAN/CAP-II Syllabus 2012

Paper 3; Corporate & Other law( One paper-two Sections-Three hours-100 marks)
Part A: Indian corporate laws (25 Marks)
1.
-

Companies Act, 1956

Meaning, concept and types of companies
Incorporation of companies
Lifting of "Corporate Veil"
Conversion of public company into private company and vice versa
Memorandum of Association (MOA) & Articles of Association (AOA) and amendments
thereof.
Promoters, Board of Directors and their duties and functions
Preliminary and Pre- operating Contracts and Expenses
Shares and debentures, Prospectus meaning, contents, abridge from of prospectus,
additional disclosures and statements by experts, mis statement and its consequences,
allotment , underwriting, use of application money, purchase of own shares and financial
assistance to buy its own share into stock , alternation of stock, reduction vs. diminution,
issue of discount, premium, shares warrant, calls on shares, transfer of shares.
General Meeting of shareholders
Meeting of Board of Directors
Winding up & Liquidation of Company

2. Negotiable Instrument Act

- Comparative analysis of relevant provision of Nepalese Instrument Act with Indian
Negotiable Instrument Act 1881.
Paper B: Nepalese Corporate Laws ( 75 Marks)
1. Companies Act 2063 and Securities Act 2063
Meaning, concept and types of company
Incorporation of Company, Prospectus, Memorandum & Articles, Share and
Debenture, General meeting and Board Meeting, Accounts and Audit, Liquidation
of Company and Offence, Punishment and Legal Proceedings, Relevant provision
of Nepalese Company Act.
Meaning and concept of Securities and Security Exchange
General Concept on Securities Exchange Board, Securities Exchange Market and
Transactions of securities, Securities Exchange professionals, Offences, penalties
and legal Proceedings and other Relevant Provision of Nepalese Securities
Exchange Act 2063.
2. Banking laws
Concept of Banks and types of banks
Role of central bank and directives issued by Central bank other to banks and financial
institutions
Objectives and functions of the central bank
Establishment and Managements of Commercial and Development Bank
Supervision, Direction and Monitoring of the banks
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Enlightened International Academy/CA Classes/ICAN/CAP-II Syllabus 2012

Banking Offence and Penalties

Relevant Provision of banking Acts (NRB Act 2058 and BAFIA 2063)
3. Industrial Laws
Meaning, Concept and types of Industries
General Concept of industry Promotion Board, Licensing, Registration of the
Industry, Offences of Penalties.
Meaning and Concept of Foreign Investment and Technology Transfer
General Concept of Incentive for Foreign Investor and Dispute Settlement
Relevant Provisions of Nepalese Industrial Enterprises Act, 2049 and Foreign
Investment and Technology Transfer Act, 2049
4. Labor and Bonus Laws
Concept of Labor? capital Relations
Types labor
Various Aspects of the labor, Code of Conduct and the punishment, disputes
Settlement
Meaning and Concept of Bonus
Bonus Distribution and Dispute Settlement
Relevant Provision of Nepalese Bonus Act 2030 and Labor Act, 2048
5. Law of Contract
Meaning , concept, types and Elements of valid contract
Breach of Contract and its Remedies
Performance of Contractual liability
Relevant provision of Nepalese Contract Act,2056
6. Insurance law
Meaning, Concept and types of insurance
Fundamentals Principles of Insurance
Premium and Policy
Insurance offence and Penalties
Relevant Provision of Nepalese Insurance Act 2049
7. Audit Law
Meaning and Concept of Audit
Basis of the Audit
Government Audit and Office of the Auditor General
Qualification of the Auditor
Relevant Provision of Nepalese Audit Act, 2048
8. Laws relating to the Negotiable Instruments
Meaning and Concept of Negotiable Instruments
Classification of Instruments
Difference between promissory Note, Bill of Exchange and Cheque
Negotiation, negotiability, assign ability
Rights and obligations of parties to an instrument obtained illegally
Notice of Dishonor
Noting and protesting
Presentation of Instrument
Payment of interest
Other Relevant Provisions of Nepalese Negotiable Instrument Act
9. Nepal Chartered Accountant Act & Regulations
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Enlightened International Academy/CA Classes/ICAN/CAP-II Syllabus 2012

About the Institute of Chartered Accountant of Nepal

Examination and Academic Qualification of Chartered Accountants, General Concept of code
Conduct and Penalties.
relevant Provision of Nepal Chartered Accountants Act, 2053 and Regulations 2061
Reference Books:
1. Paul L. Davies, Principles of Modern Company law
2. Avtar Singh, Company law ( 11th Edition, 1996), Eastern Book Company, Lucknow
3. Bharat Raj Uprety, Company Kanoon
4. Ellinger and Lommicka, modern Banking Law, 2nd Edition
5. J. Beatson, law of Contract, 28th Edition
6. M.N Mishra, Insurance Principles and practice, 6th Edition
7. M.C. Shukla, A manual of mercantile law
8. Kashi Raj Dahal, Industrial Jurisprudence
9. Gyaindra Bahadur Shrestha, Legal Environment of Business
10. Rishikesh Wagie and Kirti Bilash Pant, legal Environment of Business in Nepal

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Enlightened International Academy/CA Classes/ICAN/CAP-II Syllabus 2012

Paper 4: Financial management (One paper-Three hours-100 Marks)

Detailed Course Contents
1. Introduction and Fundamental Concepts of Financial Management
An overview of financial management; objectives of financial management, the financial
environment markets, institutions, and interest rated; risk and return the basics, portfolio
theory and asset pricing models, time value of money.
2. Analysis of financial statements
Overview, analysis of financial statements, precaution in statements analysis, horizontal analysis,
vertical analysis, ratio analysis, cash flow analysis, reporting fundamentals.
3. Valuation of Securities
Fixed income securities- characteristics and valuation, common stock , characteristics, valuation
and issuance.
4. Capital Investment Decision
Concepts of cost of capital budgeting, evaluating cash flow estimation, investment
evaluation and capital rationing.
5. Strategic Financial Decision
Basics of Capital structure, Capital structure management, Dividend policies.
6. Working Capital Management and financial Forecasting
Financial forecasting and working capital policy, management of cash and marketable
securities, management of accounts receivables, short term and long term funding alternatives.
7. Strategic finance and policy
Short term finance: how companies raise finance, shareholders' funds, methods of raising
equity finance, long term debt finance, dividend decision: the strategic and legal dimensions of
dividend, theory of dividend policy, capital structure: introduction, operating and financial
gearing, gearing and the required return, cost of debt capital, overall cost of capita, financial
distress, signaling and agency costs.
Reference Books:
1. Brigham, Eugene F; Ehrhardt Michael C; Financial Management- Theory and Practice,
Thomson South Western.
2. Moyer, Charles R; Mcguigan James R; Kretlow, William J; Contemporary Financial
Management Thomson South Western.
3. Shapiro,Alan C; Balbirer Sheldon D; Modern Corporate Finance, Pearson Education

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Enlightened International Academy/CA Classes/ICAN/CAP-II Syllabus 2012

Paper 5-Cost and management accounting (one paper-three hours-100 Marks)

Detailed Course Contents
1. Course Concept and costing methods
Evolution of cost accounting
Definitions
Objectives of cost accounting
Importance of cost accounting
Cost accounting system
Cost concept
Elements of costs
Types and methods of costing
2. Material control
Purchasing of materials
Receiving of materials
Inspection of materials
Storage of materials
Issuing of materials
Maintenance of inventory records
Technique of material Control
Pricing methods
Stock valuation
Materials losses
3. Labour Control
Direct and indirect labour
Control over labour costs
Attendance and Payoff system
Treatment of Holiday pay, idle time, overtime etc.
Labour turnover
Methods of wages payment
Incentive System
Accounting for labours
4. Overhead control
Classification of overheads
Manufacturing overhead
office and administrative overhead
Selling and distribution overhead
Distribution of overheads
Absorption of overhead
Treatment of under absorbed and over absorbed overhead
Treatment of certain items in costing
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5. Cost Account System, Control Accounts ( integrated and non integrated Accounting system)
Non integrated Accounting system
Integrated Accounting System
Reconciliation of Cost and financial Accounts
6. Methods of costing
Job Costing system
Batch Costing system
Control Costing System
Meaning
Recording of contract cost
Specific aspects of Contract Costing
Profit on incomplete Contracts
Process Costing System
General principles
Treatment of process loss and gains
Working progress
By products and joint products
Inter process profits
Operating Costing System
Introduction Scope
Collection, classification and ascertainment of cost
7. Cost concept for decision making
Cost Behaviour
methods of separating fixed and variable costs
Cost volume profit analysis
Profit volume ratio
Break even point
Margin of Safety
Targeted profit
Limiting factor
Marginal cost and differential costing
Marginal costing and Absorption
Others
8. Costing for planning and control- budgets
Budgets and budgetary Control system
Steps in Budgetary Control
Types of budget
Fixed and Flexible Budgeting
Implementation of budgets
Control Ratios
9. Uniform Costing and inter firm comparison
Meaning
Application of uniform costing
objectives of uniform costing
Advantages of uniform costing
Limitations of uniform costing
Inter firm Comparison
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10. Cost Control And Cost Reduction

Introduction
Distinction between Cost Control and Cost Reduction
Advantages of Cost Reduction
Cost Reduction Plan & Program
Scope of Cost Reduction
11. Cost Audit
Important aspects of Cost Audit
Purpose of cost Audit
Types of Cost Audit
Advantages of Cost Audit
Functions of Cost auditor
Reference Books:
1. Cost Accounting- S.K. Saxena & C.D Vashist
2. Management & Cost Accounting- Colin Dury

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Paper 6-Business Communication & marketing (One paper- Two sectionThree hours-100 Marks)
Section A Business Communication
A. Introduction Communicating at Work
1. Succeeding in the new workplace
2. Examining the process of communication
3. Overcoming interpersonal barriers
4. Communicating in organization
5. Ethics in business communication
6. Strengthening your communication skills
B. Working in Groups
1. Listening skills
2. Group interactions
3. Determining group goals
4. Individual roles in groups
5. Conflict resolution
6. Effective meetings
7. Writings notification, agenda and minutes
8. Giving and receiving feedback in groups
C. Communicating Across Cultures
1. Importance of International business
2. Diversity in today's workplace
3. Ways to look at culture
4. Values, beliefs, and practices
5. Nonverbal communication
6.Writing to an International audience
7. Learning more about international business communication
D. Employment Communication
1. Preparing for employment
2. The persuasive resume
3. Preparing for computer scanning
4. Faxing or emailing your resume
5. The persuasive letter of application
6. Follow up letters
7. Interviewing for employment
E. Analyzing Information and Writing reports and Proposals
1. An Inside Perspective: Analyzing Data and Writing reports
2. A timetable for writing reports
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3. Choosing information foe reports

4. Analyzing data and information for reports
5. Organizing information in reports
6. Presenting information effectively
7. Report types informational and analytical
8. Formal and informal reports proposals
Reference Books:
1. Guffey, Mary Ellen, Business communication: Process and product. 3rd Ed. Singapore:
Thomas Asia Ptv ltd, 2004.
2. Bovee, Courtland L., John V. Thill, and Barbara E. Schatzman. Business Communication
Today. 7th Ed. New Delhi: Pearson, 2003
3. Lesikar, Reymond V., John D. Pettit, Jr. and Marie E. Flatley, Lesikar's Basic Business
Communication. 8th Ed. New Delhi, Tata McGraw Hill, 2001.
Section B Marketing
1. Meaning of Marketing and Marketing mix
Marketing: meaning and importance
Marketing mix: meaning and components
2. Evaluation of marketing concepts
Production, product, selling, marketing, customer and societal concepts
3. Environmental context of Marketing
Marketing environment: meaning & importance
Micro environment forces in marketing
Macro environment forces in marketing
Marketing environment in Nepal
4. Market Segment and Targeting
Market segmentation : meaning , benefits and requirements
Process of market segmentation
Segmentation variables for consumer and industrial markets
Market targeting
Market segmentation in Nepal
5. Market Information System
Meaning and importance of market information system
Components of marketing information system
Marketing research process
6. Buyer Behavior Analysis
Meaning and importance of buyer behavior
Stages of consumer buying process
Factors affecting consumer buying process
Features of organizational buying behavior
Factors affecting organizational buying behavior
7. Product Decisions
Product : Meaning ,levels, types
Product life cycle
Process of new product development
Product line and mix
Service product
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Branding, packaging, labeling

Product scenario in Nepal
8. Price Decisions
Price: meaning, importance and objectives
Methods of price determination
Price policies and strategies
Pricing scenario in Nepal
9. Place Decisions (Distribution)
Place: meaning, importance and objectives
Channels structures for consumer and industrial products
Physical distribution : meaning and components
10. Promotion Decisions
10.1 Promotion: meaning, objectives
10.2 Promotion mix: meaning and factors affecting it
10.3 Advertising: meaning, importance, objectives, media
10.4 Public relations: meaning, objectives, methods
10.5 Sales Promotion : meaning, objectives , methods
10.6 Personal selling: meaning, objectives, methods
10.7 Promotion scenario in Nepal
11. Emerging Concepts in Marketing
11.1 Relationship marketing
11.2 E - commerce
11.3 Strategic alliances
Reference Books:
1. Philip Kotler and Gary Armstrong- Principles of Marketing. Pearson.
2. Dr. Govinda Ram Agrawal. Fundamentals of Marketing. A Nepalese Perspective M.K.
Publishers and Distributors.
Williams Stantion, M.S. Etzel and Bruce S. Walker. Fundamentals of Marketing TaTa Mc Grawhill Book Co.

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Paper 7: Income tax & Vat

Detail Course Content
Part A: Income Tax (60 marks)
a. Income Tax Regulation of Nepal
1. Basic concepts
a. Definitions of;
i.
Terms defined in section @ of the Act.
ii. Terms defined in Rule 2 of the Rules
iii. Terms defined in various other Sections and Rules of the Act and rules
iv. Meanings and use of various terms used in Act and Rules.
b. Basis of taxation:
i. Imposition of tax on persons
ii. Calculation of tax and rate of tax including schedule 1 of the Act.
c. Taxable income:
i. Assessable income
ii. Taxable income
iii. Various heads of income
d. Tax exemption and tax concessions
i. Income which are exempted from tax
ii. Income for which tax concessions are allowed.
e. Quantification , allocation and characterization of amounts:
i. Quantification
ii. Characterization of payments under annuities, installments and leases.
iii. Transfer pricing and other arrangements between associates
iv. income splitting
v. General and anti- avoidance rules
2.

Computation of taxable income

a. Calculation of income from business:
i. Components of income from business
ii. Incomes which do not form part on income from business
iii. Deductions allowed from income from business
iv. Limitations and conditions for a particulars deduction
v. Schedule @ of the Act.
b. Calculation of income from employments
i. Components of income from employment

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Enlightened International Academy/CA Classes/ICAN/CAP-II Syllabus 2012

ii.

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Income which are excluded from income from employment

c. Calculation of income from investment

i. Components of income from investment
ii. Income which do not form part of income from investment
iii. Limitation and conditions for a particular deduction
d. Deductions allowed from taxable income:
i. Deduction for donation and gifts
ii. Deduction for contributions of retirement funds.
iii. Deduction for life insurance premium paid
iv. Deduction for losses from income from business or investment
v. Carry forward and carry back of losses for setoff.
e. Tax Credits:
i. Medical tax credits
ii. International taxations
3. Other relevant matters regarding taxable income
a. Tax accounting and timings
i. Method of tax accounting
ii. Cash basis of accounting
iii. Accrued basis of accounting
iv. Reserve of amounts including bad debts
v. Averaging inclusions and deductions under long term contracts.
b. Calculation of net gains from disposal of assets and liabilities
i. Classification of assets
ii. Net gains from assets and liabilities
iii. Outgoings and incomings from asserts and liabilities
iv. Disposals and deemed disposals of assets and liabilities
4.

payment of tax and tax returns

a. Form, place and time for payment of tax
b. Withholding by employers
i. Withholding by employees
ii. Withholding from investment returns and service fees
iii. With holding from insurance premiums and contract payments.
iv. Final withholding payments
c. Advance payment of tax
d. Tax returns
i. Return for advance tax
ii. Annual tax return

5.

Assessments, appeals and penalties

a. Tax Assessment
i. Self assessments
ii. Jeopardy assessments
iii. Amended assessments
b. Appeals
i. Departmental review
ii. Appeal to revenue tribunal
c. Interest and fines

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Interest and fines as per section 117 to 122

b. Income Tax Regulation of India
Basic concepts
1. Gaining knowledge about:
i. Assessment year
ii. Previous year
iii. Person and Assesses
iv. Definition of income under the income Tax Act
v. Gross total income
vi. Total income and its computation
vii. Agricultural income
viii. Casual income
ix. Capital and revenue receipts
x. Capital and revenue expenditures
xi. Method of accounting relevant to computation of income
2.

Residential status and its effect on tax incidents:

i. Classification of persons as per residential status
ii. Factors to decide residential status of an individual
iii. Factors to decide residential status of a Hindu undivided family
iv. Factors to decide residential status of a firm and association of persons
v. Factors to decide residential status of a company
vi. Relationship between residential status and incidence of tax
vii. Connotation of receipt of income
viii. Connotation of accrual income
ix. Connotation of income deemed to accrue or arise in India.

3.

Income that is exempted from tax

i. Income exempted from tax under section
ii. Special provision in respect of newly established undertakings in free trade zone, electronic/
software/ hardware technology park and software technology park.
iii. Special provision in respect of newly established hundred percent export oriented
undertakings.
iv. Deductions available to export of handmade wooden articles
v. Exemption in respect of income from property held for charity
vi. Exemptions on income of a political party

Part B: Value Added Tax of Nepal ( 40 Marks)

1. Basic concepts
a. Definitions of:
i. Terms defined in Section 2 of the Act
ii. Terms defined in Rule 2 of the Rules
iii. Terms defined in various other sections and rules of the Act and Rules.
iv. Meaning and use of various terms used in Act and Rules
b. Appointment of tax officer and his/her jurisdiction
c. Imposition of VAT
i.
Transaction covered by VAT
ii. Goods and services exempted from tax
iii. Place and time of supply
iv. Rate of tax
v. Conditions for zero rate of tax
vi. Assessment and collection of tax
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2. Registration and cancellation

a. Registration
i. Conditions for compulsory
ii. Threshold for small vendors
iii. Proxy conditions for compulsory registration
iv. Voluntary registration
v. Registration not available
b. Cancellation of registration
Conditions and procedures for cancellation of registration
3.
Taxable value, tax collections and offsets, refund of tax
a. Factors determining taxable value
i.
General conditions
ii. Extra ordinary conditions
iii. Taxable value for dealers in used goods
b. Market value concept ant its applicability
c. Tax collection
i. Registered person has to collect tax
ii. Tax collection by custom authorities
iii. Bank guarantees facility available for payment tax.
iv. Restriction on unregistered persons to collect tax.
d.Offset of tax
i. Partial tax offset
ii. Proportionate tax offset
iii. Tax offset not available
iv. Conditions of tax offset
e. Refund of tax:
i. Under regulation condition
ii. Under export conditions
iii. Refund by some specific institutions as per section 25.
iv. Limitations on refund
4.

Accounts and records

a. Invoices
i. Conditions for unregistered person to issue invoices and its content
ii. Conditions for issue of different kinds of tax invoices and their contents
iii. Conditions for issue of tax invoices for dealers in used goods.
b.Accounts and records
i. Taxpayers duty to keep up to date accounts of its transactions
ii. Types of accounts and records to be kept by a taxpayer and their contents
iii. Certification of the accounts and records
iv. preservation of the accounts and records.

Reference Books & Acts:

1. Income tax; Theory and Practice, Jagdish Agrawal
2. Students Guide to Income Tax- Dr. Vinod K. Singhnia and Monica Singhania.
3. Income tax Act 2058 & Rules 2059
4. Value Added Tax 2052 & Rules 2053
5. Relevant Finance Act
EIA CA Classees Pokhara-8 Srijanachowk; Email/FB: [email protected]; web: www.eiapokhara.com

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Enlightened International Academy/CA Classes/ICAN/CAP-II Syllabus 2012

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Best of luck to Our Dear Students!

EIA CA Classees Pokhara-8 Srijanachowk; Email/FB: [email protected]; web: www.eiapokhara.com

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