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Understanding Form DPT-3

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Understanding Form DPT-3 : Compliance, Filing, and Implications for Companies

Introduction

Form DPT-3 is a critical compliance requirement under the Companies Act, 2013, designed to ensure transparency and accountability in the acceptance of deposits by companies. This article aims to provide a comprehensive understanding of Form DPT-3, including its purpose, filing requirements, procedural aspects, and implications for companies.

What is Form DPT-3?

Form DPT-3 is a return of deposits that companies must file annually. It captures details about deposits and outstanding loan amounts that a company has, ensuring that companies disclose their financial obligations transparently. The form is governed by the Companies (Acceptance of Deposits) Rules, 2014, particularly Rule 16 and Rule 16A, which outline the requirements for filing this form.

Purpose of Form DPT-3

The primary objectives of Form DPT-3 are:

  1. Transparency: To ensure companies disclose their deposit and loan details, promoting transparency in financial dealings.
  2. Regulation: To regulate the acceptance of deposits by companies, ensuring they comply with the provisions of the Companies Act, 2013.
  3. Monitoring: To provide the Ministry of Corporate Affairs (MCA) with data to monitor the financial health and risk exposure of companies.

Who Should File Form DPT-3?

All companies, except government companies, are required to file Form DPT-3. This includes:

    • Private Limited Companies
    • Public Limited Companies
    • One Person Companies (OPCs)
    • Small Companies
    • Foreign Companies
    • Section 8 Companies
    • Insurance companies

The form must be filed by companies that have accepted deposits or have any outstanding money or loan received that is not considered a deposit, as per the definition in the Companies Act, 2013.

 

Exemptions from filing DPT – 3 Form

The following companies are exempted from filing the DPT-3 form as per the Acceptance of Deposits Rules of 2014 under the Companies Act:

  • Government companies
  • Banking institutions
  • Non-Banking Financial Companies (NBFCs)
  • Housing Finance Companies registered under the National Housing Bank
  • Any other company notified under subsection (1), section 73 of the Companies Act

Government companies are exempt from filing Form DPT-3 due to their unique regulatory framework and oversight mechanisms. However, they must still comply with other applicable provisions of the Companies Act, 2013.

Specific Scenarios

For example, if a private limited company has borrowed funds from its directors, such amounts may not be classified as deposits but still need to be reported in Form DPT-3. 

DPT-3, the filing of return of the deposit, applies to various types of money or debts, including:

  • Secured
  • Unsecured
  • External,
  • Commercial borrowings, among others.

Even if a company has received a loan from the following entities, it must file Form DPT-3.

  • Holding company
  • Subsidiary company
  • Associate Company

Types of Return Filed Using Form DPT-3

There are two primary types of returns that can be filed using Form DPT-3:

  1. One-time Return: For 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 1 April, 2014 to 31 March 2019, shall be filed within ninety days from 31 March 2019 along with fee as provided in the Companies (Registration Offices and Fees) Rules, 2014.
  1. Annual Return: For reporting deposits or particulars of transactions not considered deposits, on a yearly basis.

    2. Form DPT-3 is an annual filing, meaning it needs to be submitted once every financial year. The filing deadline is within 90 days from the end of the financial year, specifically on or before June 30th each year.

    Filing Requirements and Due Dates

    Information Required

    When filing Form DPT-3, companies need to provide detailed information, including:

    • CIN (Corporate Identification Number)
    • PAN (Permanent Account Number)
    • Registered Office Address
    • Total Amount of Outstanding Money/Loan
    • Details of Creditors

    Due Dates

    • One-time Return: The one-time return has to be filed for a period starting from 1st April 2014 to 31st March 2019, within ninety days from 31 March 2019.
    • Annual Return: The due date for filing the annual return is 30th June of every year. For example, for FY 2023-24, the due date for DPT-3 is 30th June 2024.

    Penalties for Late Filing

    If the company does not adhere to the requirements of DPT-3 and keeps accepting deposits then it will face the following consequences:

    • Under Section 73: A penalty of minimum 1 crore or twice the amount of deposits whichever is lower, which may extend to Rs. 10 crores. 
    • For every officer who is in default imprisonment up to 7 years and with a fine not less than Rs.  25 lakhs which may extend to Rs. 2 crores.  
    • Under Rule 21: On the company and every officer in default a fine which may extend up to Rs. 5,000, and where the contravention is a continuing one, a fine of Rs. 500 for every day since the default.  

    There is no established view, if a NIL return must be filed, however, it is always beneficial to take the conservative approach and file a NIL return.

     

    Step-by-Step Procedure for Filing Form DPT-3

    1. Preparation
    • Gather Necessary Information: Collect all required financial information and details about outstanding loans and deposits.
    • Board Resolution: Pass a board resolution authorizing the filing of Form DPT-3.
    1. Filling the Form
    • Access MCA Portal: Log in to the MCA portal using the company’s credentials.
    • Select Form DPT-3: Navigate to the e-Forms section and select Form DPT-3.
    • Fill in Details: Enter the required information accurately, ensuring all fields are completed.
    1. Attachment of Documents
    • Auditor’s Certificate/ Declaration: Attach a certificate from the company’s auditor verifying the accuracy of the details provided, if applicable. (Statutory auditor is required to file declaration regarding “Particular of deposits” and “Particulars of liquid assets”)
    • Copy of Trust Deed: If applicable.
    • List of Depositors: Attach a list of depositors, including details like name, address, deposit amount, and maturity date, if applicable.
    • Copy of Instrument Creating Charge: If applicable.

    All the attachments shall be either in pdf or.jpg format. The size of each individual attachment can be up to 2MB.

    1. Verification and Submission
    • Verification: Ensure all details and attachments are correct.
    • Digital Signature: The form must be digitally signed by the director, manager, CEO, or CFO of the company.
    • Certification: A practicing professional (Chartered Accountant, Company Secretary, or Cost Accountant) must certify the form.
    1. Payment of Fees
    • Fee Payment: Pay the prescribed filing fee based on the nominal share capital of the company.
    1. Acknowledgement
    • Submission: Submit the form electronically on the MCA portal.
    • SRN Generation: Upon successful submission, a Service Request Number (SRN) is generated as an acknowledgement.

    Common Pitfalls to Avoid

    • Incorrect Information: Ensure that all financial details are accurate to avoid penalties.
    • Missing Deadlines: Use reminders and compliance calendars to avoid late filings.

    Consequences of Non-Compliance

    Non-compliance with the filing requirements of Form DPT-3 can lead to significant penalties and legal repercussions for companies, including:

    • Monetary Penalties: The company and its officers may be liable to pay fines for failing to file the form on time Under Section 73 and Under Rule 21 of the Companies (Acceptance of Deposits) Rules, 2014.
    • Legal Action: Persistent non-compliance may result in legal action by regulatory authorities (ROC).

    Frequently Asked Questions (FAQs) 

    • What is “Deposit”? 

    As per section 2(31) of the Companies Act, 2013 (“Act”) read with rule 2(1)(c) of the Companies (Acceptance of Deposits) Rules, 2014 (“Deposit Rules”) deposit includes any receipt of money by way of deposit or loan or in any other form, by a company, but does not include the receipt of money as provided under the exclusion list in the rule 2(1)(c) of the Deposit Rules.

    • What is “Exempted Deposit”?

    The amounts received by a company but excluded from being deposits as per the list provided in Rule 2(1)(c) are exempted deposits.

    • Whether nil return is required to be filed in case of one-time and annual return?

    In our view, no nil reporting is required, however, it is always beneficial to take the conservative approach and file a NIL return.

    • Can both one- time return and the annual return be filed in one Form or two different Forms to be filed for the two purposes? 

    Separate e-Forms is to be used for separate purposes. E-form DPT-3 contains radio button for each purpose and allows to choose only one purpose at a time by choosing respective radio button.

    • Whether interest accrued and due/not due on borrowings is also to be reported in Form DPT 3?

    In our view, amount outstanding in relation to receipt of money is required to be reported. In case of loans and debentures, the amount reflected in balance sheet on liability side comprises of both principal as well as interest accrued and due. Accordingly, the same needs to be reported.

    Interest accrued but not due is not an outstanding liability as it is not even due, therefore, the same need not be reported.

    • ABC Private limited had allotted unsecured Non-Convertible Debentures (‘NCD’) to XYZ Limited, unlisted company on January 11, 2019. Whether the same is required to be reported in e-Form DPT-3 ?

    In terms of the Deposits Rules, unsecured and unlisted NCDs are treated as Deposits [Clause (ix) & (ixa) of Rule 2(1)(c)]. In other words, secured NCDs even if unlisted, and listed NCDs even if unsecured, shall not be treated as Deposits.

    However, in the aforesaid case, even though the NCDs were unsecured but being issued to another company will be treated as Exempted Deposits. Accordingly, the same will be reported in one-time and annual return in e-Form DPT-3.

    Our Assistance in FORM DPT-3 Filing

    At AGR Advisors LLP, we offer complete assistance in filing E FORM DPT-3. Our services encompass the following:

    • Collection of Information: We collect all the information by providing Excel Sheet and after receiving the information, we initiate the filing process.
    • Form Creation: Our expert team prepares the Form based on the provided information and applicable regulations.
    • Review and Confirmation: We sent for the review of the Form and for Confirmation to ensure accuracy of Details and compliance.
    • Submission Confirmation and Payment Receipt: Once the Form is successfully filed, we will provide you with the Submission Confirmation and Payment Receipt as proof of submission.

    AGR Advisors LLP is a trusted legal firm specializing in Form DPT-3 filings and a wide range of business-related services. Contact us today to ensure prompt and accurate reporting of outstanding debt or undisclosed funds to the Ministry of Corporate Affairs (MCA). Let us help you meet your regulatory obligations efficiently and effectively.

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