Gratuity Allowance for Employer - Employee has worked for 3 Years in 1st company and 2 Years in 2nd company

I have 3 companies in the same group. My Employee has worked for 3 Years in 1st company and 2 Years in 2nd company
I am giving him gratuity from 2nd company.
Then what will be expenses allowable under both of my companies?

Entire amount is to be allocated to 2nd Company. 1st Co's service period will be carry forward to the 2nd Company.

If in your internal accounting if you are interested to proportionate allocate the cost , you may do so also. As both the organizations are yours, you may allocate as per your choice based on your finance dept. /auditor advice.

S K Bandyopadhyay
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
www.usdhrs.in

Do you have a gratuity account with a bank? if yes and its a single account for consolidated then no issues money comes from there directly in favour of the beneficiary
Does the finance keep gratuity accounting separate and show it as liability? if yes then Mr.Bandyopadhyay suggested 1st legal entity to transfer money to second and then pay
if the legal agreement says company has rights to transfer to subsidiary or holding as per need etc etc - then find a way to apportion it and pay it.

net net we need to pay if the payment terms are matured

The cost of gratuity of the sister concern of the company shall be adjust in the cost transfer during the preparation of balance sheet.

Could you explain what you mean by "Expense Allowable"

Are you talking from income tax point of view, company law accounting or are you asking what can be deducted from the payment being made?