Group gratuity

Deepak Tapse (Accounts Manager - Taxation)   (1771 Points)

18 June 2016  

A company has taken Gratuity Insurance policy  in LIC Trust which run by LIC for Gratuity Liability. In this case whatever fund available in LIC Gratuity Fund is to be treated as Assets of company or not. Premium paying by company is Asset or Expneses?

When an employee resign from company, company is receiving grautity amount from LIC and pay to employee, also bank account is opened in the name of company.