friend.....mujhe cap budgeting me dep & tax ka treatment samaj nahi a ra.....sumtimes it adds after calculating PAT........SUMTIMES IT IS ONLY DEDUCT FROM PROFIT BEFORE DEP & TAX.....sumtimes it is of no use in the ques......plzz clear ma quesry....
shobhit chandra (ipcc student) (707 Points)
03 October 2011friend.....mujhe cap budgeting me dep & tax ka treatment samaj nahi a ra.....sumtimes it adds after calculating PAT........SUMTIMES IT IS ONLY DEDUCT FROM PROFIT BEFORE DEP & TAX.....sumtimes it is of no use in the ques......plzz clear ma quesry....
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 03 October 2011
there are two ways of calculating Cash Flows After Tax(CFAT)
1) CFAT==PAT+Depr
2)CFAT==CFBT(i.e.before depr & taxes)- tax liability
for example
CFBT----100
- depr--- (10)
PBT --- 90
- tax @ 50%--(45)
PAT 45
1) CFAT==45+10==55
Or
2) CFAT==100-45==55
Desi Mojito
(Chartered Accountant)
(142 Points)
Replied 03 October 2011
Kamal
(article)
(165 Points)
Replied 03 October 2011
ARUN KUMAR
(Financial Consultant )
(992 Points)
Replied 03 October 2011
DEP IS USED TO TAKE TAX BENEFIT
1. ADD & LESS
2.NOT ADD TAKE TAX BENEFIT
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