15 February 2011
A company was incorporated in 2009. There are 20 employees in the company as on today. They have not provided for gratuity till now. The obligation for payment of gratuity arises only after 5 years.
Is the company required to give provision for gratuity in the books. Do this need to be certifed by an actuary as per AS 15.
16 February 2011
Provisioning of Gratuity is compulsory as per AS-15. You can calculate the same on your own in a spreadsheet. Let me know if you need the format.
As per AS-15, it is advisable to go for acturial certificate once in three years
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