MSME-1 is a half-yearly return in which a company tells the Registrar how much it owes to micro and small suppliers beyond 45 days, and why. It is due by 30 April (for October to March) and 31 October (for April to September), and only companies that actually have such overdue dues need to file. DPT-3 is an annual return, due by 30 June, of deposits and of money the company received that the law does not treat as deposits, such as certain loans. Many private companies file DPT-3 every year even though they have never taken a deposit, because of the second part.
The two forms are often handled together because both draw on the year-end ledgers, but they answer different questions. Each is taken in turn below.
If you would rather have both returns prepared from your books and filed, our ROC compliance plan covers MSME-1 and DPT-3 with the company’s other forms.
MSME-1: dues to micro and small suppliers
Why the return exists
The Micro, Small and Medium Enterprises Development Act, 2006 limits how long a buyer may take to pay a micro or small supplier: the agreed payment date cannot be more than 45 days from the day the goods or services are accepted (or deemed accepted). Late payment carries compound interest at a high statutory rate. MCA uses its power under section 405 of the Companies Act to make companies disclose such delays twice a year.
Who has to file
A company files MSME-1 for a half-year if it has received goods or services from suppliers registered as micro or small enterprises and has payments to them outstanding for more than 45 days. A company with no such overdue dues for the period does not file a nil return.
Medium enterprises are not covered, and the supplier’s status depends on its own Udyam registration. If your supplier has not told you, ask for its Udyam certificate; vendors registering on the Udyam portal receive one they can share.
What the return asks for
- the supplier’s name and PAN (and Udyam number);
- amounts paid within 45 days and beyond 45 days during the period;
- amounts outstanding, split by whether they are under or over 45 days;
- the reasons for any delay.
The data must match your purchase ledger. The most common difficulty is not the form but the vendor master: many accounting systems do not flag which suppliers are micro or small, so the list has to be built before the first filing.
If MSME-1 is not filed
Section 405(4) of the Companies Act, 2013 makes the company and every officer in default liable to a penalty of ₹20,000, plus ₹1,000 for each day after the first that the failure continues, up to ₹3,00,000. The same applies to information that is incorrect or incomplete in a material respect.
The return is only the reporting side. The supplier’s right to interest under the MSMED Act exists whether or not you file, and unpaid dues to micro and small suppliers can also affect when the expense is allowed for income-tax purposes. Ask your tax adviser how that applies under the Income-tax Act, 2025.
DPT-3: deposits and money not treated as deposits
Why private companies file it
Section 73 allows a company to accept deposits only in the manner Chapter V of the Act provides, and private companies rarely take public deposits. But the Deposit Rules define “deposit” widely and then list receipts that are not deposits. DPT-3 asks the company to report both: any deposits, and the receipts it treated as exempt. That second part is why a company that “has no deposits” may still have to file.
Typical exempt amounts reported
The return commonly covers items such as:
- loans from banks and financial institutions;
- loans from a director (or, in a private company, a director’s relative), given with a written declaration that the money is not borrowed;
- loans from other companies;
- advances received against supply of goods or services, within the period the rules allow;
- share application money pending allotment, within the time allowed for allotment or refund.
Each item has conditions in the rules. If a condition is not met (for example, an advance that is not adjusted within the permitted time), the amount may become a deposit, which raises much bigger issues than the return itself.
Due date and figures
DPT-3 is filed once a year, by 30 June, with figures as on the preceding 31 March. Where the company holds actual deposits, an auditor’s certificate is attached. Because the figures come from the audited balance sheet, the audit timetable needs to allow for it.
MSME-1 and DPT-3 side by side
| Point | MSME-1 | DPT-3 |
|---|---|---|
| How often | Half-yearly | Yearly |
| Due | 30 April and 31 October | 30 June |
| Who files | Companies with dues to micro or small suppliers outstanding beyond 45 days | Companies with deposits or with receipts reported as not being deposits |
| Source data | Purchase ledger and vendor MSME status | Loan and advance ledgers, audited balance sheet |
| Legal basis | Section 405 order of the Central Government | Deposit Rules under Chapter V |
Frequently asked questions
Does an LLP file MSME-1?
No. MSME-1 is filed under an order for companies. An LLP still owes interest under the MSMED Act if it pays a micro or small supplier late.
We paid everything within 45 days. Do we file?
Under the current order, MSME-1 is needed only where payments to micro or small suppliers are outstanding beyond 45 days. Keep your working papers showing why no return was due.
Is a loan from a director’s relative exempt for DPT-3?
For a private company, the exemption for money from a director also extends to a relative of a director, provided the lender gives the written declaration that the amount is not borrowed. It is still reported in DPT-3 as an exempt receipt. Check the declaration is on file before treating the amount as exempt.
Complianto (complianto.in), operated by Mentorcorp Private Limited, is a private consultancy and is not affiliated with any government body. We do not issue official documents. We charge a professional fee for application assistance and advisory services. Applicants can apply directly to the government without our fees via the official portals: MCA (mca.gov.in), Income Tax (incometax.gov.in), GST (gst.gov.in), MSME (udyamregistration.gov.in), FSSAI (foscos.fssai.gov.in), Startup India (startupindia.gov.in), and IP India (ipindia.gov.in).
This article is general information, not legal or tax advice.
