https://www.taxtmi.com/circulars?id=10946 Provision and disclosure of gratuity liability are required for true and fair accounts; where no provision or an inadequate provision is made, the estimated accrued liability or shortfall must be disclosed. Acceptable methods include cash basis, accrual basis and a separate gratuity fund; actuarial valuation is recommended (generally at least triennially) to determine accruing liability, and where actuarial methods are not used the basis must be disclosed. Under provision or uncovered fund deficits must be noted. Tax considerations permit gross or net of tax measurement provided future taxable profits justify netting. en-us Mon, 21 Nov 1977 00:00:00 +0530 Fri, 17 Jun 2011 18:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=10946 Provision and disclosure of gratuity liability are required for true and fair accounts; where no provision or an inadequate provision is made, the estimated accrued liability or shortfall must be disclosed. Acceptable methods include cash basis, accrual basis and a separate gratuity fund; actuarial valuation is recommended (generally at least triennially) to determine accruing liability, and where actuarial methods are not used the basis must be disclosed. Under provision or uncovered fund deficits must be noted. Tax considerations permit gross or net of tax measurement provided future taxable profits justify netting. Circulars Companies Law Mon, 21 Nov 1977 00:00:00 +0530 https://www.taxtmi.com/circulars?id=10946