School of Management & Entrepreneurship (SME)

IIT Jodhpur

Course Outline

Course Name : Legal Aspects of Business

Credits :2
Type : Core
Session Duration : 50 Minutes
Semester : II
Year : 2021
Faculty : B.Ramana Kumar
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A Brief Overview of the Course

The course is to introduce the laws for business to the students of the MBA course. This is a
course from which the students would be able to know where to find the relevant issues in a
business environment. As the course in introductory in nature many aspects of advance laws
for business like IPR, Labour laws and other enactments are not part of the course.

Course Objectives
The course shall aim to provide an Indian and International perspective on the following:
a. Background understanding and overview of the origin, nature and sources
of law, and the governing legal and judicial system; and
b. An insight into the working of the specific elements that constitute the domain of
Business Law.

Pedagogy
Online and where required off line with the aid of power point presentation. Study with the
prescribed books and bare acts of the enactments

Evaluation Scheme
Assignment- Individual and group during the course: 30 marks
Quizzes: Assessment test comprising of objective type questions (throughout the course
duration): 30 marks
End -Exam (descriptive questions): 40 Marks

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 Special Instructions
Attendance in the class is critical to understand the concepts. While the classes would be with
the aid of power point presentation, it is important to attend to understand the concepts. The
PPTs would be shared before or after each class

Session Plan

Session Topic and Sub-topics Reading Title of the Case study/

No. (article/any other Exercise/Assignment/
material) Role-play/Any other
Preparation before the
class
1-2 Introduction to business laws Business General evolution
Legislation for of law from the
Evolution of law and society, introduction to law, types
Management Indian context.
of law, Criminal law, Civil law, Common law and Paperback – 1
January 2018
Statutory law.
by M.C. Kuchhal
Knowledge of the different laws that are required for & Vivek Kuchhal
business.
What is Business Law, Introduction to Business Law,
Business Law meaning and Definition, Business Law of
India, English Mercantile Law, The Statute Law ,
binding and precedents in Judicial Decisions, Customs
and Usages

2-3 Types of entities and Judicial process in India. Business Legislation

Various structures such as proprietorship to company, for Management
choosing structures. The different options available to Arbitration &
Conciliation Act,
start a business; the various modes of business entities
1996
Sole proprietor—Partnership—Company- private limited
company and public limited company—Limited Liability
Partnership—

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 Franchise—Workers Co-operatives—Not for profit
society. - Societies and Trusts.
Kinds of Trusts
The Judicial process in India, Hierarchy of statutory
authorities, Courts and Tribunals. The various appellate
process for the various laws like Income Tax, Company
Law, Indirect Taxes, other specialised laws
Arbitration and Reconciliation in India
4-8 Indian Contract Act
Evolution of laws: The ancient Indian laws, 1872
Mohammedan law, Sale of Goods 1930
Indian Contracts Act: the general principles of the law The Negotiable
of contract, special kinds of contracts, namely contracts Instrument Act
of Indemnity and Guarantee, Bailment, Pledge, and 1881
Agency. operation of business, entrepreneurs, laws that Specific Relief Act,
affect business, breach of contract, 1963
Sale of Goods: Conditions and Warranties, Transfer of The Law of Torts
Ownership and Delivery, Rights of an Unpaid Seller,
Nature of Contract of Sale.
The Negotiable Instrument Act: Nature and Types,
Negotiation and Assignment. Holder in Due Course,
Dishonour and Discharge a Negotiable Instruments.
The law of Torts: A tort is a civil wrong. This is basically
a breach of a duty imposed by law, which gives rise to a
civil right of action for a remedy not exclusive to any
other area of law. Law of torts came to India through
England.
Force Majure clauses in contracts
Specific performance of contract

9-12 Partnership Act

1932,

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 Laws governing sole proprietors, law of partnership Companies Act
and Companies 2013
The Indian Partnership Act:- relations of partners to one Limited Liability
Partnership Act
another and third parties, Rights, Duties and Liabilities
2008
of Partners, Dissolution of Partnership Firms, Definition
and Registration of Partnership. Dissolution of
partnerships and modes of closure of business
Laws governing Companies and LLP:- Types of
Companies, Memorandum and Article of Association,
Shareholders and Debenture Holders, Minority
Protection, Winding-up. Closure of business, transfer of
business
Introduction of laws governing large companies like
SEBI , disclosure norms, Accounts, Accounting
standards etc

13-16 Tax Laws – Income Tax, Wealth Tax and

Gift Tax ( As applicable)
Heads of Income
Income Tax
Deductions, exemptions, Rebates and Reliefs
Act 1961.
Income of other persons included in one’s income
Computation of Income, carry forward of losses
Assessment procedure
Special provisions to certain companies, Non-Residents
Assessment procedures
Tax Deducted / collected at Source
Payment of tax : advance tax, self-assessment tax
Refunds
Appeals, penalties, and recovery of tax
Settlement of cases

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17-19 Tax Laws - Indirect taxes Central Goods and
Meaning and features of goods an Service Tax (GST), Services Tax Act,
History of GST, GST Council, Framework of GST 2017 (CGST)
Registration under GST. Compulsory registration;
process for registration, Issue of Registration Number The Integrated
(GSTIN). Amendment and Cancellation’ of Registration. Goods and Services
Persons Liable not liable for registration Tax act, 2017
List of exempt goods under GST (IGST)
Important terms and definitions
Supply, Tax Liability on composite and mixed supplies. The Customs Act
1962
Time, Value and types of Supply
Levy and Collection of Tax, Refunds and Assessments.
Composition Levy,
Rules, Provisions and procedure for Input Tax Credit,
Job-work
Classification of taxable goods and Services at the basis
of tax rates.
Basics of customs law

20-22 Introduction to International Tax and Transfer International tax

Pricing laws provisions in
taxing incomes from and to various jurisdictions Income Tax Act
Provisions in the Income Tax Act
- Double taxation reliefs Double Taxation
- Special provisions relating to avoidance of tax Avoidance
- General Anti Avoidance Rules (GAAR) Agreements
The double taxation avoidance agreements (DTAA),
Transfer Pricing laws in India.
The arm’s length Price and Arm’s Length Methods OECD Vs.UN
Model, Transfer
Associated Enterprise
pricing
Safe Harbour Rules

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 Dispute Resolution Mechanisms: Mutual Agreement
Procedures (MAP), domestic mechanisms, Advance
Pricing Agreement (APA)
Dispute Resolution Panels (DRP)
23-24 Insolvency and
Bankruptcy Code
New Gen Code to aid business – The Insolvency
2016
and bankruptcy code
The Triger of the code
Debt and definition of Debt
Applications made by the creditors
Adjudicating authorities
Moratorium
The corporate Insolvency Resolution Process
The appointment of Interim resolution professional,
resolution profession
Resolution plan
Liquidation and Liquidator
Voluntary Liquidation

25-26 Legislations relating to money, enacted to safeguard RBI, Foreign

resources and economy Exchange
FEMA : objectives, applicability and major provisions in Management Act
Foreign Exchange Management Act, 1990 1990
Steps taken to prevent money laundering and prevention Prevention of
of the Benami transactions in India and their relevance Money Laundering
to the corporate and business world. Act, 2002,
Prohibition of
Benami Property
Transactions Act,
1988
PF, ESI ACTS,
balance time to
complete any

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 incomplete portions
in the above list
27-28 Residual Classes from the above