Ours is a Limited Listed Company. We formed a Gratuity Trust and get it approved by the Commissioner of Income Tax. We derive the gratuity liability by an expert on yearly basis and contribute the amount to trust and the trust get it invested the funds.
Now my question is when the employee gets the eligible gratuity on retirement, how I should calculate the exempted amount of gratuity. Whether we still treat ourselves covered under gratuity act and take 15 days salary as 15/26 or since we formed and governed by the trust I should take 15 days salary as 15/30 ??
Although we formed gratuity trust, still we governed by gratuity Act ??
Kindly provide me the reply with full proof and pl refer case law also if any??
Please treat it very urgent??
regards
saiprasad ys
CAclubindia
