What is the EBITDA,how should one calculate the taxes from operating income means we were taking x% of tax rate by ourself?

Jun 12 2013 11:30 AM

EBITDA is otherwise known as operating income.

Revenue - COGS - Operating Expenses = EBITDA

If your EBITDA is 10 crores

First you should subtract any interest expense from this, lets say 2 crores.

So you are left with 8 crores for PAT (profit after tax)

Now you will apply the tax rate (based on the company) to this 8 crores.

Jun 14 2013 10:06 AM
Revenue - COGS - Operating Expenses = EBITDA

If your EBITDA is 10 crores

First you should subtract any interest expense from this, lets say 2 crores.

So you are left with 8 crores for PAT (profit after tax)

Now you will apply the tax rate (based on the company) to this 8 crores.

Many companies might have carry forward loses etc which will reduce their tax amount.

Jun 14 2013 10:07 AM