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Gratuity

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This query is : Resolved

aditigoyal (Querist)
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11 January 2013 if a company has not made grauity provision but it wants to make the provision for gratuity now....how it will make it ?wheather company has to make the provision from begining???

@VaibhavJ

@VaibhavJ (Expert)
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11 January 2013 Hi

Gratuity is liability that will arsing for employee working on the last date for FY/period for which accounts are prepared.

Since its to be paid for employee on payroll on last working date it amounts will keep changing every FY/period.

So even if you have not booked liability before you can make provision against the same in current FY.

There is no need to book liability from beginning.

Thanks!!

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