Subject is tough ! But potential to score is High

Indirect Taxation offers a great opportunity to increase your scores. It can form a support system to help you cover marks in subjects where you are hoping to score below 50. However their is a high surprise level in the questions asked Your grasp on fundamental basics of coverage, inclusion exclusion, valuation and procedural rules should clear.

Numericals offer a great scope to score full marks.
Answers to theoretical questions are also to the point and high scoring potential exists.
Unfortunately most students do not make this subject as a basis of their high scores. This is due to a relatively unfamiliar nature of this subject not being there in B.COM/ CA inter.

General awareness is also low as compared to direct taxes especially Income Tax. Few would be knowing Basic Rate of Excise Duty or the General rate of VAT. Though most will be informed about income tax slabs.

Believe me Indirect tax is not only marks increasing potential subject but of immense interest. It has some typical things. Its case laws will interest you. Try to develop a bit of interest and believe me your interest/love will not go unrequited. You will get amply rewarded.

The time for the coverage of this paper is typically 3 months. You will need to spent 3-4 hour daily on alternate days for course coverage. The subsequent day you can solve questions for one hour and half. The last fifteen days can be used for revision.

Indirect Taxation-Preamble

Indirect Taxation covers:
.Excise
.Customs
.VAT-CST
.Service Tax

In coming days Excise , Service Tax and VAT/CST will merge to have GST. Proposed date is 1st April 2010 but may end up getting implemented one year late.

Coverage of questions will be:

.Conceptual

.Numerical

.Procedural

.Powers, Penalties, Assessment

Major differences in Direct and Indirect taxes.

Major difference in Direct and Indirect tax is that burden of taxation cannot be passed on in case of direct tax. In other words in case of Indirect taxes though the tax is on you as importer or producer or seller you can pass on the burden of tax to another person.

There are to many ifs and buts in Direct taxes which you will find missing in Indirect taxes. This is more of conceptual nature. You need to get your understanding right .

Not much planning is possible in Indirect Taxation though a lot of Tax avoidance does happen. If something is possible it is mostly at a strategic level say putting up plant in SEZ area.

Indirect taxes are regressive in nature. They do not distinguish among rich and poor.

Traditionally Indirect taxes have been a major source of revenue for the government. Though the government is trying to increase share of Indirect Taxes.