6/28/2019 Definition of Deposits for DPT-3

Definition of Deposits for DPT-3

taxguru.in/company-law/definition-deposits-dpt-3.html

akshay.akac

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

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6/28/2019 Definition of Deposits for DPT-3

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.

Tags: Companies Act, Companies Act 2013

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