04 February 2015
As per me it should b recorded as deposits under liability. Coz, the Employer has to pay Gratuity to the employees after termination of his/her services with the employer.
And if u r asking about payment of gratuity to the employee, then it should b recorded as expenses(Indirect).
04 February 2015
For software companies, gratuity expense can be a direct expense. Just check the nature of business to define if this is a direct expense or indirect expense.
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