Dear Members,
I am seeking an advise on keeping a provision of payable gratuity as an expense. The questions are as follows:
- Can an organization book the payable gratuity as an expense in balance sheet
- What will be the tax implication on it for an organisation
- How the profit will be calculated for a particular financial year – will that be including this liability (Gratuity) or excluding it.
- Can we book this liability from the first year of the employee or it can be only after completion of 5 year
Looking forward to your answers.
Best
CAclubindia
