Provision for gratuity
How does one provide for gratuity in the books of accounts ?
Last salary drawn / 26 x 15 x number of years.
Number of years or number of days (days / 365) ???
And if excess provision is provided due to miscalculation, can it be rectified in the subsequent AY?
Thanks
Gratutiy is to be computed as provided in AS 15.. AS 15 provides for acturial valuation as the the liability requires estimation of future service and discounting...
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