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Question ID : 38085


Director of a private limited company in India is appointed by it foreign holding company and the director is a national of that country. Is the Indian Company under obligation to pay gratuity to him? That director by virtue of being in India so long has become resident in India. He is in the rolls of the Indian Company and getting monthly salary. After completing 10 years of service at the time of his resignation, should the Indian Company pay gratuity?

Posted by balasubramanian on Apr 07, 2019


Answer ID : 76471

Why not? If the employee whether foreign or Indian completes continuous service of five years and as per the required staff strength if the company is required to pay gratuity then the said whole time director employee of the company is eligible to get the gratuity as per the gratuity act,1972. Certainly the exemption limit of Rs.20 lakh from tax will be applicable to him also as he is resident now.

Posted by CA. JHA SHANKAR KUMAR on Apr 07, 2019
Answer ID : 76476

Gratuity Act do not differentiate between Foreigner and India . If he is an employee of the company and serves more than 5 years, he is eligible for gratuity .

Posted by CA. BISHT RAKESH on Apr 08, 2019