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Gratuity Calculation

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(Querist)
03 July 2009 Hai,
Our company has "not" covered under PG Act, Pls tell me shall i calculate Gratuity for employees for services rendered less than 5 years. Pls help me most urgent.
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CA. B.SRINIVASULU

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CA. B.SRINIVASULU (Expert)
03 July 2009 Only if the company has crossed 5 years gratuity liability will arise. Until then notes on accounts should state that gratuity is not applicable to this company as on date.
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