How CA, CS, Auditors and Directors can identify compliance of Legal and Accounting Provisions of Gratuity?

Tikaram Chaudhary | Last updated: 21 December 2022

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This article explains how companies, including MNCs and NGOs with over 10 employees, can ensure compliance with the Payment of Gratuity Act, 1972. It details legal requirements like submitting specific forms to the Deputy Labour Commissioner and maintaining records, as well as the necessity of compulsory insurance or an approved gratuity fund. Furthermore, it outlines the accounting compliances mandated by the Companies Act, 2013, specifically Ind AS-19 and AS-15 (Revised 2005), which require actuarial valuations for accurate financial reporting of employee benefits.

Introduction The Payment of Gratuity Act, 1972 is applicable to all establishments (i.e. MNCs, Private Schools, Private Colleges, Private Universities, NGOs, Autonomous Bodies and Other business entities) having more than 10 employees. Gratuity is a statutory right of employee whoever completes 5

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About the Author

Tikaram Chaudhary

Founder GTFC

Profile of Our Firm - GTFC GTFC is an Indian Corporate Consulting Firm based in Capital of India - Delhi and founded by Mr. Tikaram Chaudhary. The Firm registered with Ministry of Micro, Small Medium Enterprises with Registration Number - UDYAM-DL-11-0013795. The Firm has a team of professionals with decades of exper ... Read more

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