Group gratuity

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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.

Replies (3)

Sir,

  1. The premium paid is an employee benefit expense, and
  2. The gratuity amount received by the company for employees is not its asset; it is a liability.

Thanks Mr. Manish

But, my question is acculamated fund along with interest given by LIC is asset of company or not.

Originally posted by : Deepak Tapse
Thanks Mr. Manish

But, my question is acculamated fund along with interest given by LIC is asset of company or not.

No sir.


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