In order to protect the interests of creditors and depositors, the Central Government, in consultation with the Reserve Bank of India (RBI), notified the Companies (Acceptance of Deposits) Amendment Rules 2019 through the Companies (Acceptance of Deposits) Rules 2014. The DPT-3 form is a one-time loan return form that must be filed by a company that has outstanding loans that are not treated as deposits. According to the most recent Ministry of Corporate Affairs (MCA) Amendments, all companies, excluding government corporations, are required to file a one-time return for outstanding receipts of money that are the Company’s loan but are not considered deposits. According to Rule 16A, every Company (other than a government corporation) is required to file a one-time return for transactions that are not considered deposits. As a result, whether you are a small business or a one-person operation, you must file Form DPT 3 MCA.
DPT-3 MCA Applicability
EForm DPT-3 is applicable to all types of money or debts, including:
- Secured
- Unsecured
- External
- Commercial Borrowings and others
Furthermore, even if the Company received a loan from one of the following entities, it must file the FORM DPT-3:
- Holding Company
- Subsidiary Company
- Associate Company
Other points to consider include:
- Rule 16A requires all companies that have received money or a loan to file a DPT-3.
- Even if the Holding Company, Subsidiary Company, or Associate Company obtains the loan, the DPT-3 Form must be filed.
- If the Company has not paid the loan by the 1st of April 2014 and it is still outstanding, such loans must be reported to the ROC using the DPT-3 Form.
List of Companies That Are Exempted From Filing Form DPT-3 MCA
Certain businesses are exempt from submitting the Form DPT-3. The following are the names of the companies:
- Banking companies;
- Non-Banking Finance Companies (NBFC);
- A housing finance company;
- Others as notified.
The companies listed above are not required to file because the new rule is based on Section 73 of the Companies Act, and the exemptions listed above are provided in Section 73 itself.
The Distinction between Deposits and Non-Deposits
Every registered Company must distinguish between deposits and non-deposits when filing returns to the MCA on e-Form DPT-3. Here are some of the funds accepted or arranged by the Company that are not considered deposits and, thus, do not need to be filed for returns. Here is a list of deposits that are exempted under Rule 2(1)(C) of the Companies (Acceptance of Deposit Rules) of 2014.
- Funds were received from the following:
- GovernmentÂ
- Foreign GovernmentÂ
- Foreign Bank
- Loans made from any of the following sources:
- Public Financial Institutions
- Insurance CompaniesÂ
- Banks
- Intercompany transactions
- The Company’s securities subscription and advance call
- Funding received from the following sources:
- The Director of the Company
- In the case of a Private Limited Company, someone who manages the directorship at the time of lending.
- Compensation is paid to an employee. According to the employment contract, the amount does not exceed the employee’s annual salary. A non-interest-bearing security deposit is one example.
- Funds received in a single tranche of 25 lakh or more in convertible notes from a start-up company
- Funds received by the holder of the issuing secured bonds or debentures
- Unsecured fund transfer from the promoters of the Company
- Funds received from the Nidhi Company or the Chit Fund Company pursuant to the 1982 Chit Funds Act.
- Funds obtained from any of the following sources:
- Scheme of Collective Investment
- Alternative Investment Vehicles
- Investing in Mutual Funds (SEBI registration)
- A sum that does not qualify as a deposit under the Companies Act.
Laws governing Form DPT-3 MCA
The laws that govern Form DPT-3 MCA has been mentioned below:
- Section 73 Companies Act of 2013
Deposits from the general public are not accepted.
- Section 74 Companies Act of 2013
Repayment of Deposit accepted prior to the start of this act
- Section 75 Companies Act of 2013
Compensation for the deception
- Section 76 Companies Act of 2013
- Rule 16A Companies (Acceptance of Deposit Rules) of 2014
It talks about a one-time return. According to the rules, every Company (other than a government company) is required to file a one-time return regarding the receipt of money or loans that are not considered deposits.
- Rule 2(1)(C) Companies (Acceptance of Deposit Rules) of 2014
The rule defines the term “deposit.”
The term “deposit” refers to any money received by a company as a deposit, loan, or in any other form, but does not include the amounts specified in Rule 2(1)(c) of the Companies (Acceptance of Deposit) Rules, 2014.
Documents Required For Filing E FORM DPT-3 MCA
The following documents are required to file Form DPT-3 MCA:
- Auditor’s Certificate
- Deposit Insurance Contract
- Copy of the trust deed
- Copy of the instrument Creating Charge
- List of Depositors
- Details of the liquid assets.
- Outstanding receipts of money or loans taken by a company which has not been considered as deposits.
Process for Filing E-FORM DPT-3 MCA
The DPT-3 MCA E-Form must be submitted using the following procedure:
- Gather the requisite documents.
- Go to the MCA portal.
- Fill out the E FORM DPT-3 MCA.
- Submit the application form.
- Receive the confirmation from the MCA.
When To File DPT-3 MCA Return?
The DPT-3 MCA Form is a return of deposits, details of a transaction not deemed a deposit, or both, which every corporation is required to file by June 30th each year.
Is Auditor’s Certificate Mandatory for DPT-3 MCA?
It is not required to include the Auditor’s certificate when submitting a DPT-3 MCA for a One-Time return or an Annual return for an outstanding amount. Nonetheless, an auditor’s certification is necessary if the corporation is filing DPT-3 MCA for a return of deposits.
Consequences of Default in Filing the DPT-3 MCA Returns
If a business accepts deposits but fails to comply with the Form DPT-3 MCA one-time return obligations, it may incur severe penalties as mentioned below:
Penalty on the Company
A fine of one crore or double the amount of the deposit, whichever is less, shall be imposed by the MCA. The fine may be as much as ten (10) crore rupees.
Penalty on the Officers
The MCA may imprison the involved officers for up to seven years as punishment. Moreover, he shall pay a fine of 25 lakh rupees which can go till up to two crore rupees.
Penalty in case of default in paying the Fine
The Company or the Officer may be required to pay an extra INR 5,000 if the fine is not paid on time. Since the default, there has been a daily fine of INR 500 for this violation.
Conclusion
When it comes to tax collecting methods, the government may come across as egotistical and dogmatic, but it also puts stakeholders’ interests and protection first. The rights of those who have given money to the Company as a “Loan” must be upheld. Lenders are unaware of the prospect of losing money if something goes wrong, but shareholders are. In order to monitor operations and protect the interests of all stakeholders, the Ministry of Corporate Affairs has established a number of forms in which a firm must disclose information. These forms are supported by the Companies Act 2013, which has been put into effect. The Central Government, in collaboration with the Reserve Bank of India[1], announced the Companies (Acceptance of Deposits) Amendment Rules 2019 to safeguard the interests of creditors and depositors.
On January 22, 2019, the MCA declared that all businesses, excluding the government, must submit a one-time return in DPT-3 MCA. As a result, sub-rule (3) was introduced to Rule 16A of the Companies (Acceptance of Deposits) Regulations, 2014, after sub-rule (2), which had the following effect:
A fee in accordance with the Companies (Registration Offices and Fees) Rules, 2014, and any outstanding receipts of money or loans by a company that are not considered deposits, as detailed in Form DPT-3 MCA, must be submitted by every Company other than a government company within a period of 90 days from the 31st March 2019″. In order to monitor operations and protect the interests of all stakeholders, the Ministry of Corporate Affairs has established a number of forms in which a firm must disclose information. These forms are supported by the Companies Act 2013, which has been put into effect.
Read Our Article: DPT 3 Form: Meaning, Filing, And Penalties
