Corporate need funds and hence they resort to funding from inside or outside source. One of the sources of funding is deposit. In a general sense, Deposit means an act of placing money with a party. Under Companies Act, 2013 that party is a corporate and deposit can be from public or its own members depending upon the eligibility of the corporate.
Deposit has been defined under the Companies Act, 2013 and further explained under Deposit rules,2014
Section 2(31) of Companies Act, 2013 read with rule 2(1)(c) of Acceptance of Deposit Rules, 2014 provides “deposit” includes any receipt of money by way of deposit or loan or in any other form by a company, but DOES NOT include following items
● Any amount received or guaranteed from Central and State Government,
● Loan or other facilities from bank,
● Loan from Public Financial Institution or Insurance Companies
● Inter-corporate borrowing ie; ( If a company borrows from other company)
● any amount received from foreign authorities, foreign Governments, foreign or international
banks, foreign bodies corporate and foreign citizens, or person resident outside India
● Any amount received from the director of the company and in case of private company, director
as well as from his relative subject to the declaration that the sum of money is his own
● Any amount raised by the issue of bonds or debentures secured by a first charge or a charge
ranking pari passu with the first charge, compulsorily convertible within 10 years.
● Any amount accepted by a Nidhi Company
● Any amount received by the company under any collective investment scheme
● Any amount received by way of subscription in respect of a chit under the Chit Fund Act, 1982
● An amount of 25 lakh rupees or more received by a start-up company, by way of a convertible
note* in a single tranche, from a person.(*convertible in equity within 5 years)
● Such other point as mentioned in rules
Now let us understand what the Ministry of corporate affairs wants? MCA wants the companies to reveal unpaid non-deposit.On 22nd Jan 2019 MCA has made amendment in Deposit Rules,2014 by notifying with immediate effect Companies (Acceptance of Deposits) Amendment Rules, 2019. As this amendment is more important but no intention was declared by MCA for this rule. The MCA wants the companies to report the transaction which is not considered as deposit like bank loans, advance from customers as we have discussed above in the definition of deposit.
Implication of Amendments
1. One Time Return: 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(i.e 22nd Jan 2019), as specified in Form DPT-3 within ninety days from the date of said publication of this notification(22nd Jan 2019) to the 30th April, 2019 in the form DPT-3 (on its deployment within 30 days with the Registrar) along with fee as provided in the Companies (Registration Offices and Fees) Rules, 2014.”
MCA issued circular on 12-04-2019 for deployment of DPT-3
Therefore stakeholders are advised to prepare balance sheet as on 31/03/2019 as earliest as possible, because Ministry is planning to come up with new and updated form soon.
2. Periodic Return: Every company to which these rules apply, shall on or before the 30th day of
June, of every year, file with the Registrar, a return in Form DPT-3 along with the fee as
provided in Companies (Registration Offices and Fees) Rules, 2014 and furnish the information
contained therein as on the 31st day of March of that year duly audited by the auditor of the
company.
It is explained under amendments that DPT-3 Shall cover the transaction which are not
considered as deposit under deposit rules. Now companies need to file a periodic return of DPT-3 covering details of deposit, non-deposit or both.
What is Form DPT -3?
° Onetime Return for disclosure of details of outstanding money or loan received by a company but not considered as deposits in terms of rule 2(1(c) of the Companies (Acceptance of Deposits) Rules, 2014
° Return of deposit or Return for disclosures of money or loan received by a company but not considered as deposits in terms of rule 2(1(c) of the Companies (Acceptance of Deposits) Rules, 2014 or both
° Return of deposit
Thus, from the above-mentioned points, we can conclude that MCA has made mandatory obligation on every Company to file DPT-3 as Return of Deposit or Particulars of Transaction not considered as Deposit or Both.
ANALYSIS
● This rule has exempted Government companies for filing one-time Return.
● NBFC, Banking company, and Housing finance shall not file this return as Deposit Rules,2014 is not applicable to them.
● The details of Non-deposit transactions shall be of the duration between 1-4-2014 and 31-03-2019
.
● The amendment covers all the companies irrespective of the type including Public Companies, Private or small Companies, Section 8 Companies etc.
● From the literal interpretation of the amendment, it is evident that companies which do not have any kind of transaction of non deposit in past shall also required to file One Time Return of DPT-3.
● As the rule specifies every kind of loan therefore external commercial borrowing shall also come in ambit of a loan, therefore, DPT-3 shall also be required for same.
● Companies which do not have outstanding amount as on latest date of balance sheet, need not to file such form, as per context of the notification only those companies having outstanding loan shall be required to file one-time-return.
ABOUT THE AUTHOR
Aakarshit Jai: Commerce Graduate and Company Secretary Aspirant.
You can follow me on https://unacademy.com/user/aakarshit.jai
I would like to thanks my dear friend Mr. Shivam Gera and Shefali Gupta for helping me in writing this article.
Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness, and reliability of the information provided, I assume no responsibility, therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not professional advice and is subject to change without notice. I assume no responsibility for the consequences of the use of such information.
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ReplyDeleteThanks for sharing. I would like to share about DPT 3 filing. An annual return of deposits by companies whose deposits fall under Sec 73 to 76 of the Deposit Rules shall be filed only on 30 June in compliance with the Annual Return of Deposits.
ReplyDelete