Sandeep Ahuja & Co.

Established in the year 1986, we are a leading chartered accountancy firm based in Delhi & NCR rendering comprehensive professional services which include statutory audit, internal audit, direct tax, transfer pricing, GST, bank audit, propriety audit, cost accounting, internal financial controls and risk advisory.

Thursday, April 11, 2013

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.


3 comments:

  1. dear sir,

    how to issue DS2 Form without C form for wheat in delhi



    regards
    atul(Assistant accountant)

    ReplyDelete
  2. Respected Sir
    If a registered dealer purchased good ( Tax Free) lik Milk, Lassi, Etc. from other state
    Is it required to Fill DS2

    ReplyDelete