Gratuity

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 February 2015 sir

regarding provision for gratuity and leave benefit
i want to know while creating file in tally
gratuity which account head indirect expenses or not

Sandeep Dharar

Sandeep Dharar (Expert)
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04 February 2015 As per me it should b recorded as deposits under liability. Coz, the Employer has to pay Gratuity to the employees after termination of his/her services with the employer.

And if u r asking about payment of gratuity to the employee, then it should b recorded as expenses(Indirect).

Vinayak

Vinayak (Expert)
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04 February 2015 For software companies, gratuity expense can be a direct expense. Just check the nature of business to define if this is a direct expense or indirect expense.

CA Deven

CA Deven (Expert)
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04 February 2015 HI,

THERE WILL BE TWO LEDGER YOU NEED TO CREATE

1. PROVISION FOR GRATUITY ( LONG TERM LIABILITIES AND PROVISION)
2. GRATUITY EXPENSES ( GROUPED UNDER PAYROLL EXPENSES)

THANKS

DEVEN

CA Deven

CA Deven (Expert)
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04 February 2015 HOPE YOU GOT PROPER REPLY TO YOUR QUERY....

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