Ministry of Corporate Affairs, Form DPT-3, filing deadline extension, MCA-21 Portal, General Circular no. 06/2023, deposit returns, Financial Year, compliance, additional fees, transition challenges, stakeholder responsibility, supporting businesses, synopsis.

The Ministry of Corporate Affairs (MCA) has recently announced a significant development that brings relief to companies across India. In light of the transition from Version-2 to Version-3 of the MCA-21 Portal, the MCA has extended the filing deadline for Form DPT-3, which deals with the return of deposits. This extension provides companies with an additional month to fulfill their filing requirements, ensuring compliance with the revised timeline. Let’s delve deeper into this noteworthy update.

Extended Deadline

Previously, the due date for filing Form DPT-3 was June 30, 2023. However, the MCA has now extended the deadline by one month, moving it to July 31, 2023. This extension is a direct response to the challenges posed by the transition of the MCA-21 Portal from Version-2 to Version-3.

Ministry Announcement

The Ministry made this significant decision public through General Circular no. 06/2023. By issuing this circular, the MCA aims to ensure that companies have adequate time to meet their filing obligations for the Financial Year that ended on March 31, 2023.

Eligible Companies for Form DPT-3 Return Filing

Form DPT-3 applies to most companies operating in India, with a few exceptions. Here’s a breakdown of which businesses need to file:

All Types of Registered Companies:

• Private Limited Companies
• Public Limited Companies
• One Person Companies (OPC)
• Small and Non-Small Companies

Loans Between Related Parties:

Filing Form DPT-3 is mandatory even if your company receives loans from specific entities you control or have a significant influence over. These entities include:

• Holding Company: Loans from a company with a controlling stake in your business.
• Subsidiary Company: Loans from a company you control.
• Associate Company: Loans from a company you have significant influence over.

The Key Exception: Government Companies

Government companies are exempt from filing Form DPT-3.

Exempted Companies from Filing Form DPT-3

While Form DPT-3 applies to most companies, a few exceptions exist:

• Government-Owned Businesses: Companies fully owned and controlled by the central or state government are exempt from filing DPT-3.
• Regulated Financial Institutions: Certain institutions with established regulatory oversight don’t need to file. This includes:
• Banks: Banks regulated by the Reserve Bank of India (RBI) are already covered under different regulations.
• Non-Banking Financial Companies (NBFCs): NBFCs registered with the RBI are exempt.
• Housing Finance Companies: Companies registered under the National Housing Bank (NHB) don’t need to file DPT-3.
• Rare Exceptions: The Ministry of Corporate Affairs (MCA) might, in rare cases, grant exemption to specific companies under a special provision.

Form DPT-3 Applicability

Most companies in India need to file Form DPT-3, but there are a few exceptions (covered later). Here’s a breakdown of situations that trigger the need to file:

Money Received from Various Sources:

• Deposits from members or directors of your company.
• Loans secured from third-party lenders (banks, institutions, or individuals).
• Advances for goods or services, regardless of whether they’re secured by collateral or not.

Form DPT-3 casts a wide net and applies to various financial transactions:

Secured vs. Unsecured Debts:

• Secured debts involve collateral, like property or equipment, that the borrower pledges in case of default.
• Unsecured debts have no collateral backing them. Form DPT-3 applies to both.

Internal vs. External Funding:

• Form DPT-3 covers internal borrowings from members or directors.
• It also applies to external borrowings from banks, financial institutions, or even individuals acting as lenders.

Loan Purpose:

The purpose of the loan doesn’t matter. Whether it’s for business operations, expansion, or specific projects, Form DPT-3 applies to commercial borrowings.

Form DPT 3 Due Date

Mark your calendars! The deadline for filing Form DPT-3 is June 30th of every year. This applies to all companies that need to report deposits or outstanding loans (including those not considered traditional deposits) for the previous financial year.

Here’s a quick explainer:

• Financial Year: In India, the financial year generally runs from April 1st to March 31st of the following year.
• DPT-3 Reporting: Companies must report all deposits and outstanding loan receipts that happened during this financial year.
• Due Date: You have until June 30th to file the DPT-3 for the previous financial year.

For example, if the current date is anytime in 2024, the DPT-3 you need to file would be for the financial year 2023-24 (April 1, 2023 to March 31, 2024), with the deadline being June 30, 2024.

Documents Required for Filing Form DPT-3:

To ensure a smooth Form DPT-3 filing, gather the following documents:

Mandatory:

Auditor’s Certificate: This document, certified by your company auditor, verifies the accuracy of the deposit and outstanding receipt information you provide in the form.

Optional (depending on your situation):

• Trust Deed Proof (if applicable): If your company uses a trust to manage deposits, a copy of the trust deed is required.
• Instrument Creating Charge (if applicable): Did your company create a security interest (charge) on assets to secure deposits? If so, include a copy of the document outlining this charge.
• Liquid Asset Details: The form might request information on your company’s liquid assets (easily convertible to cash). Documents supporting these details may be needed.
• List of Depositors (in some cases): The Ministry of Corporate Affairs (MCA) may require a list of depositors with their details, depending on the deposit type and value.

Fees for Filing Form DPT-3

The filing fee for Form DPT-3 varies based on your company’s paid-up share capital, as determined by the Companies (Registration Offices and Fees) Rules.

Benefits for Companies

The extension of the Form DPT-3 filing deadline carries several benefits for companies operating in India. Firstly, it grants them additional time to complete the filing process, reducing the burden and pressure of meeting the initial deadline. By avoiding late filing, companies can prevent the imposition of additional fees that would otherwise have been applicable.

Transition Challenges Acknowledged

The MCA’s decision to extend the filing deadline demonstrates its recognition of the complexities and obstacles associated with the transition from Version-2 to Version-3 of the MCA-21 Portal. This acknowledgment highlights the Ministry’s commitment to facilitating a smoother filing process and easing the transition burden on businesses.

Supporting Businesses in Transition

The Ministry of Corporate Affairs’ decision to extend the due date for filing Form DPT-3 showcases its dedication to supporting businesses during this critical transition period. By providing companies with an extra month to complete their filings, the MCA demonstrates its understanding of the challenges businesses face during such transitions.

Compliance and Stakeholder Responsibility

To benefit from the extended deadline, it is vital for stakeholders, including companies and professionals, to stay informed and take note of General Circular no. 06/2023. By doing so, they can ensure compliance with the revised timeline provided by the Ministry. This will help companies fulfill their filing requirements without incurring any additional fees. ‘Talk to CA’ to know more

Conclusion

The Ministry of Corporate Affairs’ decision to extend the filing deadline for Form DPT-3 brings relief to companies grappling with the transition from Version-2 to Version-3 of the MCA-21 Portal. By granting an additional month, the Ministry supports businesses in meeting their filing obligations while avoiding late filing fees. It is crucial for stakeholders to stay updated on the latest circulars and comply with the revised timeline to make the most of this extension. The MCA’s commitment to assisting businesses during this transition period highlights its dedication to fostering a conducive environment for corporate compliance and growth in India.