In case a company is not following the Payment of Gratuity Act and instead pays the gratuity to its employees as part of CTC when the employee leaves the organization, whether actuarial valuation is required or not. The company is not funding the gratuity liability and creates a provision for the liability in the books based on internal calculations. It should be noted that as per AS-15, the company falls under one of the categories where valuation is mandatory. Different views are being received on this matter; can anyone suggest?
From India, Mumbai
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From India, Mumbai
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You should get the actuarial valuation done so as to have the correct provision of liability in the books
From India, New Delhi
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118From India, New Delhi
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Gratuity Valuation knowledge.pdf