28 December 2021
A company has insured its liability towards Gratuity with LIC. In the FY 2013-14 LIC had disbursed Gratuity amount for a leaving employee but due to some reason the employer did not pay the sum to the employee & the employee never claimed it again. The Company has also formed a Trust to handle the Gratuity payments. What treatment should be given to this unpaid gratuity amount which is outstanding in the books of the Gratuity Trust of the Employee.
CAclubindia
