Urgent - Operating Profit

Provision for taxaxtion should not be considered as an expense at all for calculating operating profit

Its Non Operating Profit.

Even Depreciation & Interest are Also Not Operating Expenses.

and Depreciation if Calculated on Production Basis I Mean Variable Then Only It Will Be Treat as Operating.

operating profit = ebit

For the purpose of calculating  Operating Profit only Cost of goods sold and other Operating expenses i.e Admn. exp., Selling & distributation exp. are considered.

Formula is  Sales-(COGS+Admn. exp+S&D exp.)

its wl nt be included in operating profit.....its a NON OPERATING EXPENSE....

expenses incurred in operation of activity.....is operating exp. n prov for tax is that we r making provision...so its a liablity

operating expenses are those expeses which are incurred in order to affect the production or business...provsion for taxation is not an expense which can be related to production directly and also it is the below the line item and not treated as operating expense.

Dear Ramu,

You are confuse, dont worry........

I agree with Ayush, Aditi & Prachi

Provision for taxation is not an expenses...........