Long awaited circular has been issued by MCA today for
clarification on definition of deposits. With the introduction of section 74 which
was notified on April 01, 2014, any deposit accepted by a Company had to be
repaid in terms of section 74 (1) by 31st March,2015. Today MCA has
clarified that amounts received prior to 1st April, 2014 by private companies
from their members, directors or their relatives shall be considered as
deposits under the Companies Act, 2013 because such receipts / advances were
not treated as 'deposits' under section 58A of the Companies Act, 1956 and
rules made there under.
It is further clarified that such amounts received by private
companies prior to 1st April, 2014 shall not be treated as 'deposits' under the
Companies Act, 2013 and Companies (Acceptance of Deposits) Rules, 2014 but subject
to the condition that private company
shall disclose, in the notes to its financial statement for the financial year
commencing on or after 1st April, 2014 clearly specifying the figure along with
the accounting head in which such amounts have been shown in the financial
statement.
Any renewal or acceptance of fresh deposits on or after 1st
April, 2014 shall, however, be in accordance with the provisions of Companies
Act, 2013 and rules made there under.
Provisions
of section 74 and its compliance before issue of Such Circular
Section 74 of the Act, 2013 provides that the in case of
deposits accepted before the commencement of the Act, 2013, where the deposit
or part thereof or interest thereon has remained unpaid on such commencement or
where the deposit falls due after April 1, 2014, Company shall:
- U/S 74(1) (a) File with the MCA a statement of deposit accepted and deposits remaining unpaid detailing the interest as well as the arrangement made for such repayment.
- Before or on 31st March 2015 i.e within one year from such commencement or from the date on which sums are due, whichever is earlier to repay the amount outstanding with interest due there on.
Every company which has accepted deposits before the
commencement of Act, 2013, to file DPT 4 with the MCA within 3 months from
April 1, 2014 or from the date the deposits are falling due for payment. The details
of all deposits accepted by the company and sums remaining unpaid on such
deposits and the interest payable thereon along with the arrangements made for
repayment are included in such form.
The due date for filing of DPT 4 was July 31, 2014 further
extended up to August 31, 2014 to enable the companies to file the statements
by way of General Circular no. 27/2014. Non-filing of such a statement is
an offence and is punishable under Section 450 of the Act, 2013 and the Companies
have to bear additional fee cost for completing the compliance by filing the
DPT-4.
NOW MCA HAS RELAXED TO CERTAIN EXTENT BY NOT TAKING SUCH
ADVANCES TAKEN PRIOR TO THE COMMENCEMENT OF COMPANIES ACT 2013, IN THE
DEFINITION OF DEPOSITS AND ISSUED THE MOST AWAITED CIRCULAR NO.05/2015
