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ramesh (n/a)     22 June 2010

Gratuity Fund

Hi

Can anybody confirm "  Is it compulsory to create seperate gratuity fund " with any of the Insurance Companies?

Can't the company meet the liability from its working capital?

Further what does Section 4 A  "Compulsory Insurance "of Paymnet of Gratuity Act, 1972 :  denote?

Please advice

Thanks & Regards

Ramesh



Learning

 1 Replies

Satya Narayana Palukuru (Advocates & Mediators.)     22 June 2010

Hi Ramesh

Gratuity fund is acculated fund of all past years and is your liability towards employees

Your current account reflects only for present  financial year

Since statutory liability  , a clause to protect your company  from heavy  financial burden in a single year

also verify with your company Accountant pl


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