Gratuity is a statutory liability on the employer, which experience sharp increase every year due to increase in salary and increase in service.
We at Soatech, help to create Gratuity Fund and Trust for easy and effective management
Our general scope of service covers
- Carrying out a comparative analysis of a minimum of 3 Gratuity Fund Management Companies.
- Analysing the different aspects of the proposals
- Presenting comparative report to the management with recommendations
- Identifying the Insurance Company in line with Management requirement.
- Incorporating the Gratuity Trust
- Advice on day to day management, accounting policies of the Fund & when gratuity is actually paid out
Benefits of having Gratuity Funds are:
- Pressure on the working capital of the company will ease out as the Gratuity liability will be discharged through Fund.
- Amount will grow with the performance of Fund which helps to cover the partial increase in gratuity liability every year.
- Contribution to Fund is allowable as an expenditure under Income Tax.
- Income of Fund is exempt from tax.
- The fund value will add to the valuation of the Company.
- The fund helps in achieving good Corporate Governance as liability is secured by asset