Reversal of provision for gratuity
This query is : Resolved
22 August 2011
i know that gratuity is allowed on payment but wht about the reversal of provision for gratuity.(and the same has been credited in P&L account).
support your answer with case law
support your answer with case law
22 August 2011
YES, CREDITED TO PROFIT AND LOSS ACCOUNT AS PER COMPANIES ACT.
HOWEVER AS PER INCOME TAX WOULD BE LESS FORM PROFIT BECAUSE GARRULITY IS ALLOWED AS EXPENSES ON PAYMENT BASIS HENCE EARLIER PROVISION OF GRATUITY WAS DISALLOWED
HOWEVER AS PER INCOME TAX WOULD BE LESS FORM PROFIT BECAUSE GARRULITY IS ALLOWED AS EXPENSES ON PAYMENT BASIS HENCE EARLIER PROVISION OF GRATUITY WAS DISALLOWED
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