Paper 7 – Direct and Indirect Taxation (CMA Inter Group I) by CA Raj K Agrawal

Frequently Asked Questions (FAQs):

Q. What are the direct and indirect taxes?

A. In the CMA course, you’ll encounter direct and indirect taxes, which are essential but sometimes complex financial subjects. Direct taxes are taxes you pay directly to the government, such as income tax and wealth tax, and the rates usually rise as your income or wealth increases. Businesses collect indirect taxes and transfer them to you, the consumer, resulting in higher prices. Everyone pays the same rate, such as the Goods and Services Tax (GST). To tackle these topics, focus on understanding the basics, liability, assessment, collection, tax planning, and dispute resolution. While these subjects may seem a bit challenging, mastering them is crucial for success in financial management and compliance with tax laws.

Q. How do I get CMA inter direct tax exemption?

A. If you score 60% or above in any subject paper in the CMA Inter or CMA Final exam, you are eligible for exemption from that subject paper for the next exam of the same group. This means that you do not have to appear for that subject paper again. For example, scoring 60% or above in the Taxation paper in the CMA Inter exam exempts you from that paper in the next CMA Inter exam. This will give you more time to focus on the other subject papers in the group.

Q. Is GST a direct or indirect tax?

A. GST is an indirect tax. Indirect taxes are taxes levied on goods and services that are ultimately paid by the consumer. The seller collects the tax, but they can pass on the tax cost to the buyer in the form of higher prices. Direct taxes, on the other hand, are taxes levied on individuals or businesses. The taxpayer pays the tax directly, and they cannot transfer the tax cost to anyone else.
To know more about taxation, enroll in this CMA Inter Taxation classes by CA Raj K Agrawal Sir.