Do you have Loans and Advances & Deposits in you Books of Account you need to know how to comply with eForm DPT 3 and Avoid penalties by filing eForm DPT 3 on or before 30th June 2019 !!
DPT 3 the new form the Ministry of Corporate Affairs has announced to track all the loans taken by the both secured and unsecured, lets look into HOW TO COMPLY AND AVOID PENALTIES FILING BY DPT 3 , this had been mandated by the Companies ( Acceptance of Deposits ) Amendment Rules 2019 as notified by the MCA on 22 Jan 2019, why this issued because This will enable the government to collect data on all receipts in the nature of loan related liabilities which are not considered as Deposits. Hence any transaction not facing recognition as a deposit ( and hence not complying with the provisions of Section 73 ) would be evident.
Secondly, the rationale behind notification wants to collect the information about unsecured loan and Loans and advance in Books and match it data available during the demonetization period.
Let’s understand which type of companies needs to company with DPT 3?
Filing of DPT-3: DPT-3 has to be filed in two ways:
(i) One-time return- 01.04.2014 to 31.03.2019 (Amount received and outstanding)
(ii) Annual Return- 01.04.2018 to 31.03.2019 (Amount outstanding)
(2) Due Date: Form DPT-3 has to be filed on or before 30th June 2019 and no extensions are proposed to be extended by the ministry.
(3) NIL return: There is no requirement to file NIL return in Form DPT-3.
(4) One-time Return: The One time Return filed for outstanding amount of money received and not classified as deposit, should only include money received after 1st April 2014 and the amount should have remained outstanding as on 31st March 2019.
(5) Annual Return: The yearly return filed for outstanding amount of money received and not classified as deposit can include money received prior to 01 April 2014 and which is outstanding as on 31 March 2019
(6) Approval process at ROC: E-form DPT-3 is not an STP return, and the same will be processed by the officials of Ministry of Corporate Affairs before providing Approval.
(7) Exemptions: Non-Banking Financial Company registered with Reserve Bank of India and Government Company is exempted from filing DPT-3. However insurance companies will not be eligible for such exemption as they are not registered with RBI.
(8) Auditor Certificate: Auditor`s Certificate has to be attached only if the eForm DPT-3 is filed w.r.t radio button 2 & 4 ie for Return of Deposit (or) for both return of deposit and exempted deposit. If DPT-3 is filed only as one time return or yearly return auditor certificate is not mandatory. There is no prescribed format for Auditor Certificate.
(9) Audit of Balance Sheet: Audited figures are not mandatory for eForm DPT-3
(10) Interest and Principal: Amount Outstanding to be filled in DPT-3 shall include both Principal and Interest Amount as on 31st March, 2019.
(11) DPT-4: The Amount outstanding before 01st April 2014 which was considered as exempt under 1956 Act but not under 2013 Act should be reported in DPT-4 and must be repaid as per the Act. Else consequences as prescribed for violation of Acceptance of Deposit Rule will be attracted.
(12) Loan from Director: Any Loan received from the Director during his tenure but later resigned himself as director and the amount so borrowed is outstanding will be considered as Exempt Deposit. The Unsecured Loan has to be shown under the head 15(h) of the Form.
(13) Object Clause: In case the Object Clause in DPT-3 does not match with Company`s MOA then the Company need not alter the object clause by filing MGT-14. The difference could be because of the CIN Allotted under Companies Act, 1956 and NIC Code. The Company shall proceed to file DPT-3 even if object clause does not match with MOA.
(14) Net Worth: Net Worth is to be considered as per the audited financials of 31st March 2018 and for the newly incorporated company Net worth is to be considered as per current balance sheet whether Audited or Not. Further, Net worth has to be calculated as provided under Companies (Acceptance of Deposits) Rules, 2014 and not as per Companies Act definition.
(15) Share Application Money: Share Application money pending after 60 days will be considered as deposits even if it is received under 1956 Act and the Application Money pending for less than 60 days will be considered as exempted deposits.
(16) Government Company: The Company which is actually a government company but not shown as Government Company in the MCA has to still file DPT-3 though DPT-3 is exempt for Government Company. The Company shall get exemption only if the same is rectified with Ministry of Corporate Affairs.
(17) Promoter: Amount taken from promoter though considered as exempt Deposits, the same has to be filed as exempt deposit under DPT-3 if it is Outstanding.
(18) Financial Year: The Company has to disclose the amount outstanding in DPT-3 as on 31st March 2019, irrespective of their Financial Year whether it is April to March or January to December.
(19) Advance for Supply of Goods: The advance received towards supply of goods up to 365 days will be treated as exempt and beyond 365 days it will be treated as deposits and same should be disclosed in DPT-3
(20) Government Subsidy: Any Subsidy received from government is outstanding as on 31st March 2019 and the same is considered as deposit as per Rule 2(1)(c) of Companies (Acceptance of Deposits) Rule, 2014
(21) Loan from NBFC: Loan amount received from a NBFC shall be disclosed as money received from other company in form DPT-3.
(22) Compulsorily Convertible Debentures: Any Compulsorily Convertible debentures issued beyond 10 years then it will be treated as deposits and the same has to be disclosed in DPT-3.
(23) Repayment of Deposits: Any amount outstanding has been resolved by the company to be repaid on a particular date but could not be repaid due to any Governmental order the same has to be treated as Deposits and DPT-3 has to be filed along with the said order has attachment.
(24) Borrowings from Bank: Borrowings from bank shall be treated as deposit if the same gets Covered under Rule 2(1)(c) and it has to be disclosed in DPT-3
(25) Strike off or Liquidation:
The Company has to File DPT-3 unless the Ministry of Corporate Affairs reflects that the Company has been struck off.
- All Companies other than Government companies are required to comply with DPT 3
- A one time return shall be filed with 90 days, in from DPT 3
- All outstanding receipt of money or loan which is not considered as a deposit as per Rule 2 (1) (c ) shall be included in the return
- The period of coverage is 1 April 2014 to 31 March 2019
Do all companies need to company with DPT 3?
Every Company other than a government company is covered by this rule and will hence
- Private Limited Companies
- Public Ltd Companies
- One Person Companies
- Even Dormant Companies need to file
What should be considered as loans which not recognized as “deposits” for DPT 3?
On careful reading of the notification relating to DPT 3 it states/uses the term “outstanding receipt of money or loan”, Hence all amounts received and outstanding are to be disclosed
Few cases of outstanding receipt of money or loan for the purpose of DPT 3
- Secured Loans
- Unsecured Loan
- Intercorporate Loans
- Relevant Trade advances less than 365 which are not deposits and trade advances > 365 which are not categorized as Deposits
- Share Application money pending allotment
What types of advances and loans need not be treated as “Loans” for the purpose of notification and need not be reported in DPT 3?
Any amount received in the course of or the purpose of the business for the following :-
i. As advance for the supply of goods or provision of services provided such advance is appropriated against supply of goods or provision of service within 365 days from the receipt of such amount,
ii. As advance received in connection with consideration for property under an agreement or arrangement.
iii. As security deposit for the performance of the contract for supply of goods or provision of services
iv. As advance received under long term projects for supply of capital goods. If any amount received under clause (I),(II) and (IV) becomes refundable due to the reasons that the company accepting money does not have necessary permission or approval to deal with the goods or services then the amount received shall be deemed to be a deposit after the expiry of 15 days from the date they become due for refund.
v. Any amount brought in by the promoters themselves or their relatives by way of unsecured loan in pursuance of a stipulation of any lending institution on the promoters. Such exemption shall be available only till the loans of the Financial Institutions are not repaid and not thereafter
vi. Any amount accepted by a Nidhi Company in accordance with rules made u/s 406 of the Act.
What are the mandatory attachment that need to made along with the form DPT 3?
• Auditor’s certificate
• Deposit Insurance contract – Mandatory if company has deposit insurance and details of same are mentioned in the form
• Copy of trust deed – Mandatory if company has trust deed and details of same are mentioned in the form
• Copy of instrument creating charge – Mandatory if company has trust deed and details of same are mentioned in the form
• List of depositors – List of deposits matured, cheques issued but not yet cleared to be shown separately – Mandatory if company has balance of deposits outstanding at the end of the year.
• Details of liquid assets
Extract of Rule 16A of Companies ( Acceptance of Deposits ) Amendment Rules
Rule16A states thus :
“Every company other than Government company shall file 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 the 01st April, 2014 to the date of publication of this notification in the Official Gazette, as specified in Form DPT-3 within ninety days from the date of said publication of this notification along with fee as provided in the Companies (Registration Offices and Fees) Rules, 2014”
Extract of FORM DPT 3
Comply with DPT 3 to avoid penalties as this information collection is very crucial to curb shell companies and companies which have given book adjustment loans
For Any support relating to filing of DPT 3, please contact experts Virtual auditor at +91 9962230333 /9513939333 / 044 -48560333 mails us [email protected]