PAYMENT OF GRATUITY to an Expat whose Salary is recovered from US Company

[mk]

Dear Sir,

Can you update the situation of Payment of Gratuity to the an Expat,

* whose Salary is paid from US Parent direct to him
* who is In India for more than 5 years
* whose PF on Salary and Income Tax is paid by Indian Subsidiary
* Employee is issued Form - 16 for payment of Indian Taxes.

In such case, will he be entitled for Gratuity.

One view ios that since he is on Roll of US Parent, Gratuity is not payable.

Other view is that as Indian Subsidiary have been Paying his PF and
Taxes, so Gratuity would be payable.

Please advise your views.

Regards,

M.Kumar

On 10/25/13, company secretary <companysecr...@gmail.com> wrote:
> Dear Members,
>
>
> Please let me know answers to below query for applicability of *GRATUITY
> ACT 1972.*
>
> *Kindly quote the relevant sections from the Act, as applicable.*
>
>
>
> *CASE : U.S. company and its branch office in India. 10 employees in
> total, out of them 1 is expat employee. He is U.S. citizen, but in India
> since April 2011 and working in branch office in expat assignments.
> Following below questions for applicability of gratuity Act, 1972 *
>
>
>
> 1. 1. Gratuty Act applicable to branch office of foreign company??
>
> 2. 2. If total no. of employee is more than 10 (including expat),
> whether gratuity act will be applicable
>
> 3. 3. Will gratuity Act applicable to expat employees also ?
>
> 4. 4. Two employees have been sent to USA for 2.5 years on separate
> agreement whether the period of US employment will be counted ?
>
> 5. 5. If US period will be counted then how to make calculation i.e.
> which amount will be considered for gratuity computation ?
>
>
>
> --
> Thanks & Regards
>
> Acs Shobhita Singh
> companysecr...@gmail.com
>
> --
> --
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[CS Shainshad Aduvanni]

Dear Sir,

What is relationship between US and India Company. Whether the employee was ever in the rolls of the Indian Company. Why PF was paid by Indian Company.

For Gratuity - Employer and Employee relationship must exist and also continuity of employment for morethan 5 years.

Pls check

For more options, visit https://groups.google.com/d/optout.

--

CS Shainshad Aduvanni
Company Secretary
Coimbatore

09841414439