With the deadline to file DPT-3 inching closer day by day, the professionals are rushing today to prepare/review the necessary data for filing of such form timely as well as accurately.

As per Rule 16A(3) of the of the Companies (Acceptance of Deposits) Rules, 2014,

“Every company other than Government company shall file a onetime return of outstanding receipt of money or loan by a company but not considered as deposits, in terms of clause (c) of sub-rule 1 of rule 2 from the 01st April, 2014 to 31st March 2019, as specified in Form DPT-3 within ninety days from 31st March 2019 along with fee as provided in the Companies (Registration Offices and Fees) Rules, 2014]”

Now, it is very imperial to understand what does not mean deposit as per said rules and the reporting of all such receipt of monies needs to be made. This articles aims to explain those receipts only in an easy and summarized manner as produced in subsequent para.

Deposit means any receipt of money as loan or deposit by a company except money received from:

  • CG/SG/Local Authority/body constituted by Parliament Act/ receipt whose repayment guaranteed by CG/SG
  • Foreign govt or Foreign banks, multilateral financial institutions and alike organisations
  • From any banking company or cooperative banks
  • CG notified Public Financial institutions
  • Issued commercial papers or other instruments as per RBI guidelines
  • From any other company
  • Rcvd as subscription money to securities, eg- share application money, exception (i.e. will be deposits)
    • If securities not allotted within 60 days of rcpt or money not refunded within 75 days of rcpt of money
    • If money not refunded but adjusted against anything else
  • Director or his relative (such designation to be seen at the time of advancing Money) if they declared that this money was not out of borrowing from others and company disclose the same in Board Report.
  • Bonds issued secured against Fixed Assets of the company (1st charge or pari-pasu with it) except Intangible assets and bonds not convertible within 10 years. Also, amount of such secured bonds not exceed fair value of underlying FA vale, as assessed by registered valuer.
  • Unsecured bonds but listed on registered Stock exchange.
  • Non Interest bearing security deposit from employee ( upto one year salary from the company)
  • Any non interest bearing amount received and held in trust.
  • Advance from business customers but goods/services given within 365 days of receipt ( if not disputed in court)
  • Advance rcvd against an immovable property by an agreement , if adjusted against such property as per agreement.
  • As security deposit as performance guarantee
  • As advance under long term project except for consideration of immovable property
  • As advance for providing warranty or maintenance services if such period is lower of 5 years or period as per common business practice.
  • As advance which is allowed by sectoral regulators or govt directions
  • As advance for subscriptions to be adjusted against recpt of publications
  • Funds infused by promoters as unsecured Loans as per rqt of banks or lending financial institutions and satisfy the following conditions:
    • Loan brought by promoter as per compulsions of lender
    • Loan brought in by promoters and/or relatives
    • Such amount is not deposit only till loan is repaid
    • Amount accepted by nidhi company

Thus, as a conclusion all the above exceptions are the subject matter of DPT-3 and all the necessary procedures should be applied to such receipts only.

Disclaimer: The information contained in this document is intended solely for dissemination of information and doesn’t aim at soliciting work in any manner. Though meticulous care has been taken but the author assumes no liability in respect of any loss/damage incurred while acting on the basis of information provided. The above framework has been developed by the author after researching since long time and a proprietary intellectual property of the author. The author can be reached at AKSHAY.AKAC@GMAIL.COM and can be called at +91-7011503210.

Author Bio

Qualification: CA in Practice
Company: akshay aggarwal & Co
Location: Central Delhi, New Delhi, IN
Member Since: 13 Apr 2019 | Total Posts: 4
I, CA AKSHAY AGGARWAL, am a Qualified and Practicing Chartered Account and having key interest and expertise in Direct and Indirect taxes. Apart from Chartered Accountancy, my interest in financial markets have persuaded me to persue and clear all the three levels of CFA (USA). I believe my expertis View Full Profile

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