Compliances

DPT 3 Form: Meaning, Filing, and Penalties

calendar15 Nov, 2022
timeReading Time: 4 Minutes
DPT 3 Form: Meaning, Filing, and Penalties

DPT 3 form refers to a one-time return application of loans owed by the organization. The non-deposit amount owed by the company is treated as an outstanding amount. The applicability of DPT 3 is only limited to debt/loan owed by the company and hence it has nothing to do with the deposit of the company. Ministry of Corporate Affairs has made it compulsory for all companies (non-government entities) to file one-time returns against the outstanding receipts of money treated as loans, and not as a deposit.

Background of DPT 3 Form

To protect the interest of depositors or creditors, the Indian government in association with RBI released the amendment in the Companies (Acceptance of Deposits) Rules 2014 via Companies (Acceptance of Deposits) Amendment Rules 2019.

The advent of DPT 3 Form

MCA (through a notification released on 22nd January 2019) directed that every non-government company should mandatorily file a one-time return in DPT 3.  Annual filing of this form is also compulsory. The sub-rule was appended post-sub-rule (2) in Rule 16A of Companies (Acceptance of Deposits) Rules, 2014 that specifies as shown below:

Every non-government company should mandatorily file a one-time return concerning outstanding receipt of loans or money by the company but not deemed as deposits, given clause (c) of sub-rule 1 of rule 2 from 01-Apr-2014 to 31-Mar-2019, as mentioned in DPT 3 form within 90 days from 31-Mar-2019 along with a fee as prescribed in the Companies (Registration Offices and Fees) Rules, 2014.

The said timeline was then altered, which was shared publicly via General Circular No.05/2019. The circular confirmed that the supplementary fee shall be imposed post-30 days from the advent of the DPT 3 form on the MCA portal.  Thus, the revised due date was 31-05-2019. Since then, annual filing of the form has become mandatory.

For whom DPT 3 Form filing is not mandatory

Every non-government company falls under this return filing requirement. In addition, according to Rule 1(3) of the Companies (Acceptance of Deposits) Rules 2014, the given entities have nothing to do with this return filing requirement:

  • Banking company
  • Non-Banking Financial Company (NBFC)
  • National Housing Bank-certified housing finance company
  • Any other entity reported under proviso to subsection (1) to section 73 of the Act

Transactions that do not fall under the deposit category

  • Any amount coming from the government or foreign government/foreign bank
  • Any amount coming as a loan or facility via any Public financial agencies, banks, or insurance companies
  • Any amount coming via a company by a company
  • Call in advance and subscription to securities.
  • Any amount coming via the company’s director or a relative of the director managing affairs of the Private ltd co
  • Any amount coming via an employee, not surpassing his/her annual salary under the employment contract
  • Any amount coming in the course of the business as an advance for the supply of services or goods or as a security deposit for the contract’s performance concerning the supply of goods or provision of services
  • Receipt of Twenty-five lakhs rupees or more by a startup entity via a convertible note, in a single tranche.
  • Amount procured via the issuance of secured bonds or debentures with the first charge, non-convertible debentures without charge on the company’s assets.
  • Unsecured loans via promoters
  • Any amount came via a Nidhi company or via a subscription relating to chit under the Chit funds Act 1982[1]
  • Any amount received via the company in the form of an alternate investment fund, collective investment scheme, or SEBI-registered mutual funds
  • Any other amount which does not fall under the deposit category under Rule 2(1)(c)

Therefore, any amount, be it secured or unsecured, which is an outstanding loan or money that does not fall under the deposit category must be reported.

Timeline of return

The one-time return should be mandatorily filed for a period commencing from 01-04-2014 to 31-03-2019. Thus, all receipts procured in the said timeline and outstanding as of 31-03-2019 had to be reported. The yearly return is for the timeline from 01-04-2019 to 31-03-2020. The return shall enclose all amounts to be paid as on the date.

Important enclosures of DPT 3 form

The followings are the details to be furnished in the DPT 3 form:

  • CIN of the company
  • Email address
  • Objects of the company
  • Company’s net worth
  • particulars of charge, if any
  • The overall outstanding amount as of 31-03-2020,
  • Particulars of credit rating

Documents to be submitted along DPT 3 form

  • Auditors certificate
  • Trust deed’s copy
  • Deposit Insurance contract, wherever required and prescribed in the form
  • Copy of instrument creating the charge
  • Depositors’ list – List of deposits matured and cheques granted but not yet cashed to be reflected separately
  • Liquid assets’ detail
  • Optional attachment

Note: The payable fees should be in accordance with the Companies (Registration Offices and Fees) Rules. 

What if the company skips the DPT 3 form filing requirement?

If the company skips the DPT 3 form filing requirement, the following penalties may come into effect.

  • Under Section 73, A penalty amounting to Rs 1 crore or double the amount of deposits whichever is lower,  which may go up to Rs. 10 crores.
  • The defaulting officer may have to face a jail term of 7 years alongside a monetary penalty amounting to not less than Rs 25 lakhs, which may go up to Rs 2 crores.
  • Under Rule 21, every company’s official in default shall confront a monetary penalty extending up to Rs 5000. In case the continuing contravention prevails, a per-day penalty of Rs 500 shall come into effect.

Conclusion

It is evident that the penalties for non-filing of DPT 3 form are severe and could put a dent in the company’s credibility. Therefore, timely filing of the same is of paramount importance for every eligible company. It’s worth noting that the DPT 3 form filing is a way to disclose the outstanding amount owed by the company in the form of a loan, not in the form of a deposit.

Read Our Article:Compliances cum Rules for Pvt Ltd Company: A Detailed Outlook

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