The Examination Committee has taken the following important decisions for the November, 2009 examinations. Students are advised to note them carefully.
A. CA course being a professional course, practical training is an essential part of it and accordingly all papers of Professional Competence Examination as well as Final should be practical oriented questions as also of the level of knowledge should be expert and not working knowledge. All questions should be compulsory at Professional Competence Examination / Integrated Professional Competence Examination and Final examinations.
B. Students appearing for the Professional Competence Examination (PCE) for November, 2009 are advised to carefully note the following important decisions taken in relation to the syllabus and pattern of questions to be set in the examinations.
1. Paper 2 – Auditing and Assurance
Students may note that a detailed announcement regarding applicable Standards on Auditing and the publications of the ICAI relevant for the examination has already been published in the September, 2009 issue of the Newsletter. They may further note that since the fringe benefit tax has been abolished w.e.f. April 1, 2010 no question would be asked on tax audit relating to FBT. Further the provisions of CARO, 2003 would be applicable.
2. Paper 5 – Taxation
The question paper would be of practical nature. Students may note that the coverage of sections for the PCE syllabus is as follows:
PART – I: INCOME–TAX (75 MARKS)
- Important definitions in the Income-tax Act, 1961 [Section 2].
- Basis of charge; Rates of taxes applicable for different types of assessees [Sections 4, 111A, 112 & 115BB].
- Concepts of previous year and assessment year [Sections 2, 3, 68 to 69D, 172 to 176].
- Residential status and scope of total income; Income deemed to be received/deemed to accrue or arise in India [Sections 5 to 9].
- Incomes which do not form part of total income [Sections 10 to 13A, 14A, 115BBC].
- Heads of income and the provisions governing computation of income under different heads [Sections 14 to 59, Sections 89, 111A, 112, 115BB, 145].
- Income of other persons included in assessee’s total income [Sections 60 to 65].
- Aggregation of income; Set-off or carry forward and Set-off losses [Sections 70 to 80].
- Deductions from gross total income [Sections 80A to 80U].
- Computation of total income and tax payable; Rebates and relief’s (Comprehensively covers all sections mentioned above).
- Provisions concerning advance tax and tax deducted at source [Sections 190 to 219, 234B & 234C].
- Provisions for filing of return of income [Sections 139 to 140, 234A].
PART – II: SERVICE TAX AND VAT (25 MARKS)
- Service tax – Concepts and general principles [Section 64].
- Charge of service tax and taxable services [Sections 65 and 66].
- Valuation of taxable service [Section 67].
- Payment of service tax and filing of returns [Sections 68, 70,71,73A, 73B and 75].
- VAT – Concepts and general principles.
Note: If new legislations are enacted in place of the existing legislations the syllabus will accordingly include the corresponding provisions of such new legislations in the place of the existing legislations with effect from the date to be notified by the Institute. Students shall not be examined with reference to any particular State VAT Law.
3. Further students should clearly note that working notes should form part of the answers.
Note: Students may note that the first paragraph of this announcement is in addition to the announcement already published in the October, 2009 issue of the students’ newsletter – The Chartered Accountant Student.