Archives for category: Delhi VAT

Frequently asked questions about DVAT Form T 2 as available on http://www.dvat.gov.in are as under:

What is the advantage of T-2 form?

T-2 form will be advantageous in two ways:

  • Will reduce the need for checking of vehicles at border. This will save lot of harassment for transporters and dealers.
  • Will help honest dealers in a way that they will not face unfair competition from dealers who sell goods in Delhi by evading tax.
  • Statistics generated will help in proper tax planning.

OTHER MODES OF TRANSPORT & TRANS-SHIPMENT ETC.

How the Oil Companies dealing in petroleum products can comply with the T-2 requirement? Movement of Natural Gas is a continuous process starting from receipt of gas in pipeline network system till delivery of gas to customers who draws gas according to Gas availability and plant requirement. Gas is transmitted through underground pipeline. Boundary of state of Delhi cannot be demarcated in the underground pipeline network. Other Petroleum products too move in Delhi/NCR by pipelines apart from tank wagons.

The T-2 format has been modified to indicate the mode of transport and one of these modes would be transportation through pipelines. The dealers may provide information in accordance with the billing cycle used by them to prepare their accounts.

If purchases/stock transfers are made from all other states, vehicle picking the material from various branches/vendors in different States may change at different locations before reaching Delhi. It is not possible in such case to have exact information about the vehicle number entering into Delhi.

In case of trans-shipment, vehicle number of only the vehicle that finally enters Delhi is required. In case of time shortage reliance can be made initially on a SMS.

Not clear whether the transporter would be allowed to bring the goods at his godown or would not be allowed to enter Delhi unless he obtains the permission of the department for all consignments in his truck.

VAT Department should be informed about the inward consignments before the entry of goods into Delhi. The dealers/ transporters are subsequently free to move the goods to godown or shop as per their requirement.

The current format of T-2 declaration is designed to capture details with regard to transport by road only. However, goods may also be received through railways/air cargo/inland courier. Whether and how the details of such consignments are required to be captured?
Form T-2 does not seem compatible for Import details;
a) In the field of supplier details how to fill STATE as materials have been imported from outside India.
b) In the field of Transporter details, whether dispatch details from outside India (By Air/By ship) to be uploaded or dispatch details of local transporter from Sea Port or Airport to be uploaded,
c) How to upload the details if materials directly come to Delhi from outside India by Air.

Some modifications have been made in the existing format of T-2 form to address such problems.Option to indicate mode of transport i.e. by road / railways / air / courier / pipeline / internet have been provided in the form. Vehicle no. would be mandatory only in case of road transport. GR / RR / Courier receipt / Airway bill no. would be mandatory for transport by road / railways / air / Courier in accordance with Form 7 & 8 of Carriage by Road Rules, 2011.

In case of transport by rail, T-2 requires the mention of RR no. whereas after receipt of goods at rail-head, goods need to be moved to warehouse etc. in numerous trucks. There needs to be a clarification on the modus operandi to be followed for movement of such goods from rail-heads to its destination.

The T-2 form is required in respect of movement of goods into Delhi (RR No. would suffice here) and not for the movement of goods within Delhi.

How to upload the details if quantity of one invoice is dispatched in multiple vehicles or multiple invoices in a single vehicle?

Multiple T-2 forms can be submitted in case of same invoice being covered by various vehicles and vice versa. In other words, one T-2 form has to be filed for each vehicle.

Can goods from NCR move without GR?

Goods carrier has to move with valid GR prescribed under DVAT and Carriage of Goods by Road Act.

CLARIFICATION ON DATA SUBMISSION

In case the invoices contain basic rates per unit for each item and the Central Excise Duty and CST is applied on gross sale value as per basic sale rate, item wise rate inclusive of central excise and CST for each item has to be recalculated in order to match the value of invoice in the portal. Large number of invoices each containing large number of items will make it an uphill task to submit the online information in T-2.
# Whether Item wise (model wise) details to be uploaded or commodity wise?
# Where there are a no. of small line items for Spare Parts models, whether Total Quantity, Total Amount and Average Rate can be uploaded?

The dealer may either give 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 to inform either unit wise rate or total value of each commodity is available.
It means that if four kind of watches of different brands/prices have been purchased, then entry of all watches can be made in one row and instead of quoting unit price of each brand, total value will be sufficient. Software has been suitably modified for the purpose.

Purchases from nearby places reach within an hour or two of invoicing, and sometimes at night. That does not leave the dealers with sufficient time for online submission and more so when the data to be submitted is bulky.
# Whether correction of information after submission is possible or whether the Form can be cancelled after submission?

Facility to populate the data regarding invoice and commodity details in draft mode and then saving the same is available. Vehicle no. can be inserted just before submission.
However, as an alternative, in such cases, brief information can be sent through SMS from the registered mobile number for a TIN. Basic information viz. rate of tax of the commodity, total value and vehicle no. will need to be submitted through SMS. One SMS has to be filed for one rate of tax.
However, such dealers will have to file online information in Form T-2 within 24 hours of goods entering Delhi. This information will be used to validate the SMS sent.

Details in Form T-2 are required to be filled in by the dealer, before entry of goods in Delhi, on the basis of information provided by the supplier of goods. At the time of actual receipt of goods, Dealer may find certain mis-matches which may occur due to various reasons. In such cases how the details can be corrected and amended in the system? Similarly, it may be required to cancel the T-2 completely. In such cases, what would be the process?

Dealers will have an option to submit another T-2 or amend it in such cases. However, all the instances cited for requirement of modification or cancellation of T-2 Form would need to be explainable with the help of relevant documents and accounts of the dealer.

In some cases goods brought in Delhi are rejected and returned to the supplier for which no C Form will be issued. In such case how the data in T-2 will be reconciled with C Form requirement.

Form T-2 is to be filed for inward movement of goods and not for outward movement. Any sales returned /coming back into Delhi have to be reported in T-2. If required supporting documents could be produced in support.

Which value of Import is to be updated, including Import Duty or without Duty?

Details including all duties are to be provided. The information should be akin to DVAT-30.

At what time the data is to be furnished in Form T-2? Whether at the time goods moved from other States or when goods are on border or when the goods are received in the godown.

Dealers may fill T-2 any time but would need to ensure that it is submitted before the vehicle/ goods enter Delhi.

If registered office address is mentioned in T-2 and the material is to be received at warehouse, no provision for mention of separate address.

T-2 intends to capture the details of goods moving into Delhi. If goods are accounted for by Delhi dealer then at whichever premises these goods are received, it can be taken care of them in his books of accounts.

The value of goods is computed automatically by the system. In most cases, the amount 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 a commodity taxable at one rate of tax.

APPLICABLITY OF FORM T-2

Various goods may enter Delhi for which Form F/C/H may not be required (e.g. products which are exempt from VAT in the state of dispatch). Whether declaration in T-2 is required for all goods irrespective of the fact that Form F/C/H are not required, or only for those goods for which said Forms have to be issued from Delhi?

Every registered dealer is required to submit the T-2 Form irrespective of the taxability of goods. These details are required for a proper and effective tax planning and analysis with respect to business and economic trends. Such exercise is instrumental in knowing and curbing the malpractices prevalent in the trade. Moreover, the tax rates and exemptions are not uniform and universal in all States.
However, as concession, the Department will not insist for T-2 for items exempt from tax in Delhi provided the information is furnished through a SMS.

In certain cases, some goods may be received physically, which do not form part of stock of dealers e.g. stationary, promotional materials, items received from vendor as free replacement against defective goods etc. Whether T-2 is required in such cases? If required, then what should be value to be used for purpose of T-2?

Every registered dealer is required to file T-2 Form irrespective of the usage of goods. Giving exemptions will deprive the Department of crucial data required for research and planning purposes, which may help in framing suitable policies. Also exemptions may abet evasion and defeat the purpose.
Still as concession, the details will not be required to be submitted through T-2 form when the value of goods is less than or equal to Rs. 25,000. In such cases only a SMS would suffice.

Whether the new rule is applicable to the materials imported for, say a factory situated in U.P. but parked at Delhi Air Port for meantime?

Form T-2 is applicable for goods purchased by Delhi’s registered dealers. For dealers of other states, a transit form will required to be filed. Details would be separately intimated.

How to deal with the situation when dealer who is not registered with the department and is dealing in tax free goods say for example in books but purchasing CDs for promotional purposes from other States.

Requirement for submission of T-2 is for registered dealers. The matter for un-registered is being considered separately.

Does the transporter require to carry a certificate that the imported goods are for self use.

Goods brought for self-consumption are likely to cost less than Rs. 25,000 and hence will be exempt from filing T-2 Form.

Whether farmers will also be required to file form T-2?

Information in Form T-2 has to be provided by dealers only if goods are costing > Rs 25,000.

OTHER CLARIFICATIONS

In some case the supplier or the buyer does not have facility of internet.

A desktop computer is relatively cheap and the seller/ buyer can also rely on their accountant to file the information on-line. In urgency, reliance can always be placed on SMS.

It is practically not viable for the dealers to intimate the department in advance exact amount of the goods being brought into Delhi. All possibilities of goods reaching Delhi and the desired information required for filing T-2 not available with the buying dealer.

Buyer has to obtain information from the seller about his purchases only before entry of goods into Delhi. Can a seller wish away the requirements of a consumer?

If the selling person is to fill in the particulars of T-2, then dealer of Delhi needs to share his user-Id and password with the seller. Password being a secret code, sharing it with others will defeat the secrecy.

The Department will allow multiple Ids to be created by dealers. Dealers can create such Ids and provide them to their suppliers, who can upload the details in T-2 form 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, and thus the confidentiality would in no way be compromised.Dealers will be able to create and close such Ids, in any number, by themselves.
The dealer shall, however, be responsible for any misuse of such IDs. In case of purchase made on Form E-I/E-II, the dealer who finally brings the goods in Delhi, shall be liable to file Form T-2.

In various cases CST purchase are made where term of sales is FOR and supplier is not providing details of transporter, vehicle number etc. In such cases how to enter said details in Form, T-2?

Delhi buyers may seek details from the supplier through phone or SMS. If buyer insists, supplier has to make the information available.

In past, on number of occasions we have experienced that Department’s website is not accessible due to various technical reasons like site under maintenance or connectivity issue. What would be alternative in such cases especially when goods are coming from nearby states such as UP, Haryana where transit time is very small?

The department will ensure that the web site works without technical failure. We are upgrading our hardware and would build in enough redundancy to cover occasional failure.

View / Download PDF Copy Link:

FAQs on DVAT Form T-2

 

Download PDF Copy of the Delhi Value Added Tax Act 2004 divided into 14 Chapters.

1.

Introduction

2.

Chapter 1 – Preliminary

3.

Chapter 2 – Imposition of Tax

4.

Chapter 3 – Special Regimes

5.

Chapter 4 – Registration and Security

6.

Chapter 5 – Returns

7.

Chapter 6 – Assessment and Payment of Tax, Interest and Penalties and Making Refunds

8.

Chapter 7 – Recovery of Tax, Interest and Penalties

9.

Chapter 8 – Accounts and Records

10.

Chapter 9 – Liability in Special Cases

11.

Chapter 10 – Audit, Investigation and Enforcement

12.

Chapter 11 – Value Added Tax Authorities and Appellate Tribunal

13.

Chapter 12 – Objections, Appeals, Disputes and Questions

14.

Chapter 13 – Penalties and Offences

15.

Chapter 14 – Miscellaneous

For updates : http://dvat.gov.in

 

Challan for Delhi Value Added Tax

DVAT Challan Form ‘DVAT 20′ is used to deposit Delhi Value Added Tax.

View / Download PDF Copy Link

DVAT Challan Form – DVAT 20 – Delhi Value Added Tax

Challan for Delhi Value Added Tax

Form DVAT 20 Challan is used to deposit DVAT under Delhi Value Added Tax.

View / Download PDF Copy Link

DVAT 20 Challan Form – Delhi Value Added Tax

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