Gratuity provision

Somesh Aradhyula (23 Points)

13 October 2016  

Respected Forum,

 

Our company is making payment to X (IRDA controlled) for the gratuity on yearly basis, in that scenario do we need to make a provision for gratuity, in our yearly balance-sheet.  Question arised as we are making the payment, hence is liability required.

Somesh

Regards And Thanks In Advance