A client approached with a query as below;
Please provide me the suggestion for the below amount to be shown in DPT-3 or not.
a. XYZ is a partnership firm. As on 31st March 2020 – In balance sheet having the other payables provision of Rs.7.77 Cr.
b. On 30th Sep 2020 – XYZ purchased by (transferred as going concern) ABC private limited.
c. Liability also transferred to ABC private limited.
Please suggest whether the above transaction to be shown in DPT-3 as on 31st Mar 2021 or not by ABC Private Limited.
If yes – How to show in the DPT-3
In order to understand whether these are deposits or not, it is important to understand the nature of transaction. The nature of transaction is settlement of the retiring Partners capital account upon retirement from the firm.
Unless some amount is received by the entity first, and then, repayment is due, no DPT 3 is filed.
In this scenario, the amount is due for payment not repayment, hence, no DPT 3 is to be filed.
Since the query was interesting, so posted for knowledge sharing.
