Gratuity Calculation Help Needed: How Do I Prepare a Provisional Statement?

Dear All,

I need to prepare a gratuity provisional statement as of 31st March 2007. Can you please help me with the calculations? How do I go about it? :(

Thanks,
Joanita

Dear Sir,

Thank you for your assistance, but I was unable to find any information on the site regarding how to prepare a provisional statement for a financial year. This statement needs to be submitted to our auditors. Please provide guidance on this matter.

Thank you,
Joanita

Hi Jaonita,

Gratuity is provided to an employee who has completed continuous 5 years in service. But I think you are preparing a provision for gratuity, so note the following things -- 15 days salary is provided to an employee for every completed year, and his last drawing salary is divided by 26, then multiplied by 15, and again multiplied by the number of years the employee has completed.

Suppose an employee who has completed three years in service and is getting a monthly salary of 20,000. How do we make a provision for gratuity?

20000/26 * 15 * 3 = payable gratuity

I hope this information will be useful. If not, you can write an email to me at gab_rajput@yahoo.com.

Hi,

Please let me know the types in which I can make the provisions:
If I form a trust: what are the benefits and disadvantages?
Book provision: merits and demerits.

It's urgent. Please help me with this.

Thanks and regards,
Sowmya