WBCHSE Class 11 Syllabus for Costing and Taxation

COSTING AND TAXATION (CSTX)
CLASS-XI
Full Marks 100

Costing (40 Marks)

Unit-I : (8 marks )
Introduction
Definition of Cost - Costing - Cost Accounting - Cost Centre - Cost Unit - Objectives of
Cost Accounting - Features of Cost Accounting - Advantages of Cost Accounting -
Limitations of Cost Accounting - Steps or Factors Necessary for Installation of a Costing
System

Unit-II : (14 marks )
A. Classification of Cost
i) Element - based Classification : Raw Materials Cost - Labour Cost - Other Expenses
Overhead - Prime Cost.
ii) Function - based Classification : Factory Cost - Administration Cost - Sellin Cost -
Distribution Cost - Research and Development Cost.
iii) Behaviour-based Classification : fixed Cost - Variable Cost - Semi-Variable/Semi-Fixed
Cost - Distinctions between Fixed Cost and Variable Cost.

B. Preparation of Cost Sheet
Definition of Cost Sheet - Basic Components of Cost Sheet - Practical Problems on
Cost Sheet (Simple Problems excluding Cost Estimation).

Unit-III : Cost of Materials-I (18 marks )
A. Storing of Materials
i) Bin Card - Definition and Necessity
ii) Stores Ledger - Definition and Necessity
iii) Centralised Stores and Decentralised Stores.

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B. Materials Control
i) Necessity of Material Control
ii) Fixation of Stock Levels of Materials : Re-order Stock Level - Maximum Stock Level -
Minimum Stock Level - Average Stock Level - Danger Stock Level (with Simple Practical
Problems)
iii) Fixation of Economic Order Quantity (EOQ) : Definition and Advantages of EOQ -
Simple Problems on Determination FOQ (with the help of Formula)

Taxation (40 Marks)

Unit-I (10 marks )
a) A brief history of Income Tax in India, Tax structure in India - Direct Tax, Indirect Tax.
b) Basic Concepts and definitions under income Tax Act :- Previous Year, Assessment
year, Assessee, Person, Sources of Income, heads of Income, Gross Total Income,
Total Income.
c) Incomes which do not form part of Total Income : Receipts by a member from Hindu
Undivided family [Section 10(2)], Share of profits from a partnership firm (Section 10(2A)]
Sums received under life insurance policy [Section 10(10D)], Daily allowances to MPs
and MLAs [Section 10(17)], Awards [Section 10(17A)], Income of a local authority [Section
10(20)], Income from dividend [Section 10(34)], Income from units [Section 10(35)],
Long term capital gains from transfer of equity shares or units [Section 10(38)].

Unit-II (10 marks )
Residential Status and Incidence of Tax of individual assessee.

Unit-III (5 marks )
Agricultural Income : Definition, Taxability of income from sale of tea and coffee grown
and manufactured in India. Very common instances of agricultural incomes and
non-agricultural incomes.

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Unit-IV (15 marks )
Income under the head "Salaries"
A) Basis of Charge (Section 15), Essential norms of salary income, Allowances :- Basic
Salary, Dearness Allowance, City Compensatory Allowance, House Rent Allowance
[Section 10(13A)], Medical Allowance, Bonus, Children Education Allowance, Transport
Allowance,
B) Perquisites [Section 17(2)]
a) Valuation of rent free unfurnished accommodation provided to (i) Central and State
Government Employee and (ii) Private Sector Employees [Rule 3(1)] - Valuation of
rent free furnished accommodation.
b) Valuation of perquisites in respect of (i) Free education to employee's children : (ii)
Payment of school fees by the employer, (iii) Education facility in employee's institute.
c) Very common examples of tax free perquisites.
III. Deduction for professional tax or tax on employment [Section 16(iii)].

Project (20 Marks)
1. Visit any manufacturing firm, collect real data and prepare a detailed Cost Sheet.
2. Collect data from any relative, who is a salaried person and compute his/her income
from salary [excluding perquisites].

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