Frequently Asked Questions on DVAT
Form T-2
1)
What
is Form T-2 and its requirements?
v Form
T-2 requires the dealers to furnish details of invoices and goods receipt note for
goods purchased or received as stock transfer from outside Delhi.
v This
form has to be submitted online before goods enter Delhi.
v If
the Vehicle Number is not available in advance, Form T 2 would need to be filed
without Vehicle Number and the Vehicle Number would need to be updated within
24 hours of receipt of the goods by the Delhi dealer.
v If
form T-2 is not filed online before the goods enter Delhi, the Delhi dealer may
not dispose of/sell/dispatch such goods till the Vehicle Number in Form T-2 is
updated online.
v The
Transporter is required to obtain a hard copy of Form T-2 and carry it with the
goods, If the dealer updates the information in Form T-2 within 24 hours of
receipt of the goods, the Transporter would obtain a revised hard copy of the
Form T-2 also and retain it.
v If
a dealer claims that he is exempted from filing information in form T-2,
Transporter would obtain a quarterly declaration from such dealers clearly
mentioning their TIN in Delhi and a self-certificate that they are exempted
from filing of information in form T-2.
v Option
to select Outside India has been included in the window for State. Option to
indicate mode of transport i.e. by Road, Railways, Air Carrier, Pipelines,
Internet has also been provided in the form. Vehicle number would be required
only in cases of road transport. GR/RR/Airway Bill/Courier Receipt would be
mandatory for transport by Road/Railways/Air/ Courier respectively in
accordance with Form 7 & 8 of Carriage by Road Rules.
2)
Various
transporters collect the material from various branches/vendors in different
States. The goods are then brought to hub of the transporter. The transporter
deploys another vehicle for different destination from the hub. In such cases
it is not possible to have exact information about the vehicle number which
brings goods into Delhi.
Vehicle number of only the vehicle that finally brings goods into Delhi
is required. The dealer should create a mechanism to get the vehicle number
before the goods enter Delhi. However, in cases where such information is still
not available with the Delhi dealer and the goods reach Delhi without the Delhi
dealer being able to ascertain the vehicle number, Form T 2 should be filed
without Vehicle Number and the Vehicle Number should be updated within 24 hours
of receipt of the goods by the Delhi dealer.
3)
Form
T-2 is designed to capture details with regard to transport of goods into Delhi
by road only. However, goods may also be received in Delhi through Railways/Air
Cargo/Inland Courier. What is the procedure for such movements? Form T-2 is not
compatible for import details. Further,
a)
What
is to be filled in the field ‘STATE’ where the supplier is out of India?
b)
What
is to be filled, in the field ‘Transporters Details’ i.e. whether dispatch
details from outside India are to be filled or dispatch details of local
transporter from Seaport or Airport are to be uploaded?
c)
How
to upload the details if materials come to Delhi directly from outside India by
Air?
Some modifications have been made in the existing format of
Form T-2 to address such problems. Option to select Outside India has been
included in the window for State. Option to indicate mode of transport i.e. by
Road, Railways, Air Carrier, Pipelines, Internet has also been provided in the
form. Vehicle number would be required only in cases of road transport.
GR/RR/Airway Bill/Courier Receipt would be mandatory for transport by
Road/Railways/Air/ Courier respectively in accordance with Form 7 & 8 of
Carriage by Road Rules.
4)
Where
the goods are transported in Delhi by Rail, Form T-2 requires mention of RR
number. After the goods are received at the rail head, goods are moved to
warehouses of dealers in numerous trucks. What modus operandi is to be followed
for movement of goods from rail head to its destination?
Form T-2 is required only in respect of movement of goods
into Delhi. RR number would suffice here. There is no requirement of any
information being uploaded for the movement of goods within Delhi.
5)
How
to upload the details if quantity of one invoice is dispatched in multiple
vehicles or goods covered by multiple invoices enter Delhi in a single vehicle?
There has to be at least one T-2 Form per vehicle entering
Delhi. Multiple T-2 Forms can be submitted in cases where the goods covered by
same invoice enter Delhi in various vehicles and vice-versa. If multiple
consignments of different dealers through different invoices enter Delhi, one
T-2 Form for each invoice is required to be uploaded. Thus, there will be one
T-2 Form per GR per vehicle per invoice.
6)
Can
goods from NCR move without GR?
No. The goods carrier has to move the goods with valid GR
prescribed under DVAT Act and Carriage of Goods by Road Act.
7)
Invoices
are prepared indicating basic rate per unit for each item and the Central
Excise Duty and Central Sales Tax is applied on gross sale value as per basic
sale rate. The portal of the Department of Trade and Taxes requires the gross
value including Central Excise Duty and CST. This requires a lot of
calculations. It makes uphill task to submit online information in Form T-2. Is
it necessary to upload item wise details or commodity wise details can be
uploaded? What is the requirement of Form T-2 if there are number of small
items for spare parts etc.? In such a case can we file total quantity, total
amount and average rate?
The dealers may give either item wise details indicating
amount for each rate of tax or he may give commodity wise details and total
amount of that tax rate. Option is available to inform either unit wise details
or total value of each commodity. It means that if four kinds of watches of
different brands/prices have been purchased then entry of all watches can be made
in one row instead of giving unit price of each brand. Total value will be
sufficient. Department Software has been suitably modified for this purpose.
8)
Information/details
in Form T-2 are required to be filled in by the Delhi dealers before entering
of goods in Delhi. This would be done on the basis of information provided by
the supplier of goods. When the dealer receives the goods, there may be certain
mismatches which may occur due to various reasons. How would the
details/information be corrected and amended in the system? Similarly in
certain cases Form T-2 may be required to be cancelled. What is the procedure?
The dealer will have an option to submit another T-2 Form giving
reference to the Unique ID against already filed T-2 Form within 24 hours of
receipt of goods into Delhi. The revised details should match with those
contained in GR/RR/Airway Receipt/Courier Receipt. The reason for revision
would also need to be indicated. If required, in such cases, the dealers may be
required to justify this with the help of supporting documents and accounts.
9)
Where
the goods are brought into Delhi or rejected and not returned to the supplier
for which dealer would not issue ‘C’ Form, how would the data of T-2 be
reconciled with requirement of ‘C’ Form?
Form T-2 is to be filed for inward movement of goods and not for
outward movement. The rejection/goods returned would be explained by the Delhi
dealer with the help of relevant documents and accounts. Out of sales made by
the Delhi dealer, if some goods are returned/come back into Delhi, the same
would be required to be reported in Form T-2. If required, supporting documents
may have to be produced.
10)
What
is the value of goods in cases of import of goods from outside the country? Is
it including import duty or without duty?
Details including all duties are to be provided. The
information should be akin to DVAT-30.
11)
Form
T-2 requires information of registered office address, and material is often
received at the warehouse. There is no provision for mentioning separate
address.
Form T-2 intends to capture details of goods entering into Delhi. The
TIN of the dealer is sufficient. The dealer should have duly informed the
details of principal and all other places of business in Delhi to the
Department.
12)
The
value of goods is computed automatically by the system. In a number of cases,
this does not match with the total invoice amount as required to be mentioned
at the top of Form T-2 on account of rounding off etc.
There is a provision for entering the total value of the
commodity taxable at one rate of tax. Option is available to inform either unit
wise details or total value of each commodity. Department Software has been
suitably modified for this purpose.
13)
Are
the dealers required to submit Form T-2 even in cases where inter-State
purchases or Stock transfer is not to be supported by on the strength of Form
C/F/H since the goods are exempted from Tax in State of dispatch?
Yes. In all cases where goods are brought into Delhi, the dealer is
required to submit T-2 irrespective of taxability. However, as a concession,
for the time being, the department will not insist for T-2 for the exempted
goods i.e. those listed in the First Schedule of the DVAT Act.
14)
Are
the dealers required to submit T-2 where goods entering Delhi do not form part
of stock of the dealer e.g. Stationery items for self consumption of the
dealer, promotional materials purchased by dealers, items received from Vendor
as free replacement against defective goods etc.
Every registered dealer is required to submit T-2 for all goods
entering Delhi irrespective of the usage of goods.
15)
Whether
submission of Form T-2 is required for goods imported by a dealer/factory of
U.P. but goods are custom cleared at Delhi i.e. import is via Delhi, since the
goods would enter Delhi, move in Delhi and then go out of Delhi to an address
mentioned in invoice of Foreign Seller.
Form T-2 is applicable for goods brought into Delhi by a dealer of
Delhi.
16)
A
dealer of Delhi dealing in tax free/exempted goods (e.g. books) and not
registered with the Department of Trade and Taxes but brings taxable goods
(like CDs etc.) into Delhi. Is he required to submit Form T-2?
Only registered dealers of Delhi are required to submit Form T-2.
17)
If
the purchasing dealer of Delhi requests the selling dealer to fill in Form T-2
on his behalf, then dealer of Delhi needs to share his user ID and Password
with the seller. Both these items have secret code, sharing it with others will
defeat the secrecy?
The Department will allow multiple User IDs to be created by the Delhi
dealers. Purchasing dealer of Delhi can create some User ID and provide it to
the supplier who can upload the details in Form T-2 at their end, on behalf of
the buyer. The multiple IDs may be distinct from their standard ID normally
used for filing of returns and paying tax. This way the confidentiality will
not be compromised. Dealers of Delhi will be able to create and close such IDs
in any number by themselves. The Delhi dealer, however, would be responsible
for any wrong uploading of data, misuse of such IDs, etc. It is, therefore,
advisable that the purchasing dealer itself furnishes the required information.
18)
What
will happen if the purchasing dealer does not have exact amount of the goods
being brought into Delhi as the requisite information is not available with the
buying dealer?
Buyer is required to obtain information from the seller about his
purchase before the goods enter into Delhi. After receiving the information he
is required to follow the procedure. The submission of Form T-2 is mandatory.
