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valuation of goodwill
For calculations of future maintainable profit.. We consider profit after tax or profit before tax?
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you need to consider PAT.... refer page 9.10 https://www.icaiknowledgegateway.org/littledms/folder1/chapter-9-valuation-pm.pdf
future maintainable profits are amount which is transferrable to capital accounts. i.e. after taxation
we start calculation with PBT because if there is change is change in rate of tax.we should consider that as well
you need to consider profit before tax
but after adding and subtracting necessary future increase in income and expenses or decrease in expenses and income ,you need to subtract tax .
if any changes are given in future incomes and expenses then take PBT(profit before tax)
after adding and subtracting those changes , you need to subtract taxes also as per future tax rate ( If not given, take current tax rate assuming that it will remain same )
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