Indian Government notifies the Payment of Gratuity (Amendment) Act, 2018; Gratuity ceiling raised to INR 2 million
Global Tax Update : May 2018 / India
At present, private sector employees covered under the Payment of Gratuity Act, 1972 (the Act) with five or more years of continuous service, are eligible for gratuity computed as per the provisions of the Act, subject to ceiling of INR 1 million upon retirement, resignation or on superannuation.
This newsletter explains the following topics;
- Indian Government notifies1 the Payment of Gratuity (Amendment) Act, 2018; Gratuity ceiling raised to INR 2 million
- No Permanent Establishment (PE) exposure for foreign company on secondment of employees2
- Goods and Service tax developments
- Clarification on clubbing of investment limits of foreign government/ foreign government related entities – Foreign Portfolio Investments (FPI) update
1. Published in The Gazette of India Notification S.O.1419( E ) dated 29th March 2018 Notification S.O.1420( E ) dated 29th March 2018 Notification S.O.1421( E ) dated 29th March 2018
2. Samsung Electronic case – Delhi Income-tax Appellate Tribunal (ITAT)
* This Article is based on the relevant Japanese or specific country’s tax law and other authorities in effect on the date of this Article. This Article would not be guaranteed updating if there are any changes in Japanese tax law, any other law, or interpretations by the courts or tax authorities thereof after the date of this Article.