Every firm other than a government entity must file a one-time return in DPT-3 according to MCA’s announcement dated January 22, 2019. It must also be filed on a yearly basis. As a result, after sub-rule (2) in Rule 16A of the Companies (Acceptance of Deposits) Rules, 2014, a sub-rule (3) was added, which reads as follows:
Every company other than a government company is required to file a one-time return of outstanding receipts of money or loans by a company that is not considered deposits in terms of clause (c) of sub-rule 1 of rule 2 from the 01st April 2014 to the 31st March 2019, as specified in Form DPT-3, within “ninety days from the 31st March 2019” along with a fee as provided in the Companies (Registration Offices and Fees) Rules,2014.
The time limit was later changed by General Circular No.05/2019, which specified that the additional cost would be charged 30 days after the form DPT-3 was issued on the MCA 21 portal. As a result, the new deadline was set for May 31, 2019. Since then, the form has been required to be filed on an annual basis.
WHAT IS FORM DPT-3?
DPT 3 is a deposit return that businesses must file to report on deposits and/or outstanding loan or money-other-than-deposits receipts. Due to the fact that Form DPT-3 has been added to the list of forms under the Companies Fresh Start Scheme (CFSS) 2020.
The Central Government, in discussion with the Reserve Bank of India, has notified a modification to the Companies (Acceptance of Deposits) Rules 2014 through the Companies (Acceptance of Deposits) Amendment Rules 2019. This is to protect the interests of creditors or depositors.
WHO IS NOT REQUIRED TO FILE A TAX RETURN?
Except for government entities, every firm is required to file this report. The following firms are likewise excluded under Rule 1(3) of the Companies (Acceptance of Deposits) Rules 2014:
Non-Banking Financial Institution
A housing finance firm registered with National Housing Bank
Any other organization that has been informed under proviso to subsection (1) of section 73 of the Act’s
DPT 3 IS BEING FILED
DPT-3 may be divided into two types:
Return just once or only for one time
On annual basis
THE SUBMISSION DEADLINE OF DPT-3
Every year, the deadline for filing the annual return is June 30th. DPT-03, for example, has a deadline of 30 June 2021 for FY 2020-21.
TRANSACTIONS THAT ARE NOT RECOGNIZED AS DEPOSITS
Any sum received from the government, foreign government/foreign bank, or guaranteed by the government.
Any loan or facility acquired from a public financial institution, an insurance company, or a bank
Amount received from a firm by a firm.
Securities subscription and call in advance.
Any money received from the company’s director or a relative of the company’s director who held the positions at the time of lending.
Any sum collected by the firm from an employee that does not exceed his annual salary as specified in his employment contract, such as a non-interest-bearing security deposit.
Any sum received as an advance for the supply of goods or provision of services, or as a security deposit for the fulfillment of the contract for the supply of goods or provision of services, in the course of or for the purposes of the company’s activity.
A startup firm receives a single amount of Rs 25 lakh or more in the form of a convertible note.
Amount raised by issuing first-charge secured bonds or non-convertible debentures that do not have a charge on the company’s assets.
Promoters’ unsecured loans.
Any sum received by the firm from Nidhi Company or by way of chit subscription under the Chit Funds Act, 1982.
Any sum received by the firm through a SEBI-registered collective investment plan, alternative investment funds, or mutual funds.
Any other amount that does not qualify as a deposit under Rule 2(1) (c).
INFORMATION THAT MUST BE PROVIDED
The CIN of the firm, email ID, objects of the company, net worth of the company, particulars of charge if any, the total amount due as of 31st March 2021, and particulars of credit rating are among the information to be provided.
TIME PERIOD OF RETURN
The one-time return must be filed for the period beginning April 1, 2014, to ending March 31, 2019. As a result, any revenues received during this time period that were outstanding as of March 31, 2019, have to be declared. The yearly return covers the period from April 1, 2019, to March 31, 2020. This return will contain all outstanding amounts as of the due date.
CONSEQUENCES OF FAILURE TO FILE
If the firm continues to take deposits despite not according to DPT-3’s standards, it will suffer the following consequences:
A penalty of at least Rs. 1 crore, or double the amount of deposits, whichever is smaller, may be imposed under Section 73, with a maximum penalty of Rs. 10 crores.
Every officer who is in default gets a punishment of up to 7 years in jail and a fine of not less than Rs. 25 lakhs, with a maximum of Rs. 2 crores.
Rule 21 imposes a punishment of up to Rs. 5,000 on the firm and each officer in default, additional a fine of Rs. 500 for each day the default continues.
SUBMISSION OF DOCUMENTS
Certificate of Auditors
Trust Deed Copies
Wherever appropriate and specified in the form, a deposit insurance contract is required.
A copy of the device that generates the charge
List of depositors – Separate lists for deposits that have matured and cheques that have been issued but not yet cleared.
Information about liquid assets
Frequently Asked Questions
Which businesses are excluded from submitting DPT 3?
Non-banking financial companies and government companies that are registered with the Reserve Bank of India are free from submitting DPT-3. Insurance firms, on the other hand, will not be eligible for this exemption since they are not registered with the RBI.
How should the net worth be calculated in order to file the MCA form DPT3?
Net worth is calculated using audited financials as of March 31, 2018, and for newly established companies, it is calculated using the current balance sheet, whether audited or not. Furthermore, the Net Worth must be determined in accordance with the Companies (Acceptance of Deposits) Rules, 2014, rather than the Companies Act.
Is it necessary to include interest and principal when filing Form DPT 3?
As of March 31, 2019, the amount outstanding to be entered in DPT-3 must contain both principal and interest.
Should form DPT 3 be accompanied by an auditor’s certificate? If so, when do we think it will happen?
Only if the eForm DPT-3 is filled with radio buttons 2 and 4, i.e. for both returns of deposit and exempted deposits, must an auditor’s certificate be attached. The auditor certificate is not required if the DPT-3 is filed as a one-time return or an annual return. There is no set structure for Auditor Certification.