Cite.Co is a repository of information and resources created by industry seniors and experts sharing their real world insights. Join Network
In case a company not following payment of gratuity act and instead pays the gratuity to its employees as part of CTC as and when the employee leaves the organization , whether the actuarial valuation is required or not. Company is not funding the gratuity liability also and creates the provision for liability in the books as per internal calculations. It may be noted that as per AS-15 the company falls under one of the category of the company where the valuation is mandatory. We are getting different views on this , can any one suggest.
From India, Mumbai
You should get the actuarial valuation done so as to have the correct provision of liability in the books
From India, New Delhi
Yes, it is advisable to get the valuation done, as your org is comes under the purview of AS 15; further, the provisions of Gratuity Act are applicable to your org, whether u create a separate Trust to manage the liability or not.
From India, Mumbai
This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2020 Cite.Co™