Menu
Payment of interest under payment of gratuity act, 1972.
Hi everybody, I have a confusion regarding the payment of interest under The Payment of Gratuity Act, 1972. As per sec 7, "If the employer fails to pay the gratuity within 30 days of it becoming payable, he shall be liable to pay simple interest....". While sec. 8 states, "The employer shall also be liable to pay compound interest...".
What am I missing here? Could somebody please explain what to make of the contradiction?
Thanks.
Replies (2)
| Originally posted by : Pratiksha | ||
 |
Hi everybody, I have a confusion regarding the payment of interest under The Payment of Gratuity Act, 1972. As per sec 7, "If the employer fails to pay the gratuity within 30 days of it becoming payable, he shall be liable to pay simple interest....". While sec. 8 states, "The employer shall also be liable to pay compound interest...". What am I missing here? Could somebody please explain what to make of the contradiction? Thanks. |
 |
Simple interest applies as per sec. 7 when delayed payment is made by the employer whereas compound interest applies as per sec. 8 when payment is not made by the employer at all and recovery process is initiated.
Thank you so much for the clear and concise reply.
Recent Topics :
- Unbarred returns
- One time commission filing in ITR2
- 600128 HSN rate
- Social Security benefit from US by resident
- E-way notices
- Itr form for Salary income, Interest, Dividend And
- Will my TDS be deducted as NRI?
- PENSION ARREAR RECEIVED - EPS 95 SCHEME
- Processing of Form 144 (prev 27Q)
- Capital Gain on sale of Vacant Land- Whether Demol
Related Topics :
CAclubindia
