Gross salary means total salary they are paying you. This includes your basic pay, Conveyance Allowance etc. before deducting tax or any other liability. You PF will be deducted from this salary. 120000/year salary is non taxable so you don't need to worry about taxes. pf will deducted @12% of your basic pay.
If this job is not on company payroll then they will give you salary and all benefits equal to 10000. eg. I f they are giving you mobile reimbursement of 1000/month then they give you 9000/month salary. If they are giving you 2000/month house rent allowance including mobile reimbursement of 1000. then they will pay 7000/month salary