Study Scheme 2018
(Updated in 2023)
S3 - BUSINESS TAXATION STRATEGIC LEVEL-1
INTRODUCTION Understand the objectives of levy of taxation, and its
This course covers Income Tax Ordinance, 2001, the basic concepts
Income Tax Rules, 2002 and indirect tax Laws such as the Comprehend the system of taxation in Pakistan
Sales Tax Act, 1990, Sales Tax Rules, and Federal Excise Act Explain provisions of Income Tax Laws mainly
as amended to-date. The objective of this course is to equip relevant to individuals and association of persons and
the students with an in-depth knowledge of direct and corporate entities
indirect tax laws applicable in Pakistan. Understand features of the direct and indirect taxes;
Execute record-keeping, filing and tax payment
OBJECTIVES requirements of principal types of taxation, relating
To provide the students with an in-depth knowledge of to business;
direct and indirect taxes to deal with day-to-day practical Recommend the management on issues, pertaining to
issues regarding computation of tax liabilities, taxable tax liabilities of company or firm, arising from various
income, refund and filing of annual and monthly returns. types of income.
Elucidate relevant Sales Tax Laws and rules
LEARNING OUTCOMES Understand the underlying concepts of Federal Excise
On completion of this course, students will be able to: Act and Rules
INDICATIVE GRID
PART SYLLABUS CONTENT AREA WEIGHTAGE
INCOME TAX
A 1. Income Tax Ordinance, 2001 60%
2. Income Tax Rules, 2002
SALES TAX
B 3. The Sales Tax Act, 1990 30%
4. The Sales Tax Rules, 2006
FEDERAL EXCISE
C 10%
5. Federal Excise Act and Rules
TOTAL 100%
Note: The weightage shown against each section indicates, study time required for the topics in that section. This weightage
does not necessarily specify the number of marks to be allocated to that section in the examination.
DETAILED CONTENTS
PART - A Sections (137 to 169, 231AB to 236CB, 236G,
INCOME TAX 236H, 236K, 236Y, 236 Z)
Refund of tax and withholding tax (sections 170
1. Income Tax Ordinance, 2001 to 171A)
Introduction and Definitions; (Sections 1 to 3) Others (sections 85, 172 to 173, 181 to 181D,
Basic Concepts (Sections 4 to 11, 74, 80 to 84) 206, 206A, 207 to 230J,
Computation of Tax on taxable income (Sections Relevant schedules to the Income Tax Ordinance
12, to 40, 113,113C, 168 to 169 excluding salary 2001
of special cases such as salary of government
employees, armed forces, judges etc, and special 2. Income Tax Rules, 2002
cases such as leasing companies, modaraba, non- Income tax rules relating to sections specified in
profit organization etc) Income Tax Ordinance.
Exemptions and concessions, (sections 41 to 55)
Losses (sections 56 to 59B excluding adjustment PART - B
/ surrender of losses under amalgamation, group SALES TAX
taxation and group relief)
Deductible allowances (Sections 60 to 60D 3. The Sales Tax Act, 1990
Tax credits (section 61 to 65G) Chapter No. I, II, III, IV, V, VII, VIII and IX of the
Common rules, assets, principles of taxation and Act, as amended up-to-date covering;
geographical source of income Definitions; (Sections 1 and 2)
Section (66 to 73) Scope and payment of tax; (sections 3 to 13, 73)
Sections (75 to 79) Registration; Sections (14 to 21A)
Sections (86 to 94, 98A, 98B,98C) Book-keeping and invoicing requirements;
Sections (101 to 101A) Sections (22 to 25AA)
Foreign source income of residents, taxation of Returns; Sections (26 to 29)
permanent establishment, thin capitalization, Offences and penalties, appeals and recovery of
avoidance of double taxation and anti-avoidance arrears. Sections (30 to 40D, 45A to 48, 72B)
Sections 102 to 112 excluding 109A) (General concepts of offences and penalties only
Filing of returns of income (Sections 114 to 119) however, excluding detailed list of penalties)
Assessment, Appeals and Audit (sections 120 to
136, 174 to 180) 4. The Sales Tax Rules, 2006
Defaults and penalties (182 to 205A including all Sales tax rules relating to sections specified in
general concepts and excluding specific rates, Sales Tax Act including
amounts and imprisonment). Rule 2(1) clause ii, xi, xiv, xvi, xvii, xxi, xxi-c, xxvi,
Collection & recovery of tax, advance tax, final xxix, xxx, xxxi, xxxii, xlvii, xlix, liv-a, lv, lx-a,
tax, and withholding tax Application and procedure for registration
including:
1
Study Scheme 2018
(Updated in 2023)
Temporary registration Eligibility and procedure for issuance of
Compulsory registration electronic sales tax invoices
Change in particulars or transfer of Payment of Sales Tax by Retailers
registration Providing Services Subject to Tax Under
Cancellation of multiple registrations Provincial Laws
Reasons and procedure for de-registration Refund Claim by the Persons Engaged in Making
including filing of final return Zero Rates, payment of sales Tax by Importers
Situations under which credit and debit notes
may be issued and adjustment on the basis of PART - C
such notes INDIRECT TAX
Treatment of input tax in case of wastage or
destruction of goods 5. Federal Excise Act and Rules
Application of formula for apportionment of Federal Excise Act, 2005(Chapter I & II only)
input tax with the concept of provisional and final (The list of items mentioned in the schedules of
adjustments, Federal Excise Act will not be tested in the
Basic concepts of filing and processing of refund examinations)
claims under rule 28 Notifications, rules general orders and circulars,
Basic concepts of supply of zero-rated goods to issued under the Federal Excise Act, 2005r
diplomats, diplomatic missions, privileged relevant to chapters I and II
persons / organizations including supplies made SRO 550 dated 5.6.2006 regarding list of
by a Tier 1 retailer, excisable services under sales tax mode
List of persons who can act as authorized SRO 649 dated 1.7.2005 regarding FED
representative including disqualifications applicable on goods manufactured in non-
Procedure and appointment of alternative tariff area but brought to tariff area of
dispute resolution committee Pakistan.
