14 November 2011
Let me reply to your query in detail: The payment of Gratuity act prescribes only that Gratuity should be paid to an elegible employee at prescribed rate.
It does not specify that you have to buy any policy for meeting the expense. However if you buy any policy (lets say with LIC gratuity fund or any other similar fund, then these people themselves do the acturial valuation on your behalf & tell you the premium that needs to be paid)
CAclubindia
