varun (CA (FINAL), M.com) (163 Points)
02 July 2009HELLO ALL,
actually m confused having a detail of few employees whom salary are still payable from 1997 onwards. the company still standing the liability .....
actually m not getting the stuff out dere...
these situation also arises in case of BONUS, WAGES, GRATUITY, EX-GRATIA ...
PLZ REPLY...............................................
praveen
(Chartered Accountant)
(6971 Points)
Replied 02 July 2009
The question now arises is if the employee is still in the organisation or not. if he has left service then it has to be written off.
varun
(CA (FINAL), M.com)
(163 Points)
Replied 02 July 2009
no they left service, but somone told me about transfer it govt. deposit type stuff!!!!!
Max Payne
(employed)
(2569 Points)
Replied 02 July 2009
Dear Varun,
What you are looking at is time barred debt, in my opinion.
It should not be treated as a liability any more. If any one wants to claim the money, that person should have filed a suit within three years from the date on which it became due... Law of limitation.
Its a different thing altogether that it was the company's duty to pay the employees dues on time... so u may have to provide the penalties and fines for that...
on a less serious note, u dont have to maintain these records, since they have been held for period longer that required by law. burn it :)
praveen
(Chartered Accountant)
(6971 Points)
Replied 02 July 2009
thanks for the answer Mr. Gopalakrishnan
CAclubindia
