Tax alert: Inter-company transfer not an impediment for gratuity entitlement


31 May 2024
The Hon’ble Bombay High Court, in its ruling dated 15 January 2024, has held that mere transfer of employment between two companies under same management, does not result in discontinuation of services of the employee. Accordingly, gratuity needs to be computed based on last drawn wages for the entire period of service across all concerned entities.

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