08 February 2013
Please tell me that a company should make the provision for gratuity or not as provision for gratuity is not allowed u/s 40 of income tax Act. so the co.should make the provision for gratuity or not???
08 February 2013
Books of accounts are prepared based on accounting principles but not based on the allowability of such expenses under income tax act. So, gratuity has to be accrued in books irrespective of whether the same is allowed in IT or not.
CAclubindia
