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FAQs related to Form T-2
January, 21st 2013
                                   FAQs related to Form T-2

Sr No.                      Question                                     Answers
      A.   ADVANTAGE
      1.   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.


2.         How the Oil Companies dealing in The T-2 format has been modified
           petroleum products can comply with the T- to indicate the mode of transport
           2 requirement?                               and one of these modes would be
                                                        transportation through pipelines.
           Movement of Natural Gas is a continuous The          dealers    may   provide
           process starting from receipt of gas in information in accordance with the
           pipeline network system till delivery of gas billing cycle used by them to
           to customers who draws gas according to prepare their accounts.
           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.

3.         If purchases/stock transfers are made from       In case of trans-shipment, vehicle
           all other states, vehicle picking the material   number of only the vehicle that
           from various branches/vendors in different       finally enters Delhi is required. In
           States may change at different locations         case of time shortage reliance can
           before reaching Delhi. It is not possible in     be made initially on a SMS.
           such case to have exact information about
           the vehicle number entering into Delhi.
     4.    Not clear whether the transporter would be       VAT Department should be
           allowed to bring the goods at his godown         informed      about    the   inward
           or would not be allowed to enter Delhi           consignments before the entry of
           unless he obtains the permission of the          goods into Delhi. The dealers/
           department for all consignments in his           transporters are subsequently free to
           truck.                                           move the goods to godown or shop
                                                            as per their requirement.

Sr No.                    Question                                  Answers
 5.      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 Some modifications have been
         cargo/inland courier. Whether and how the made in the existing format of T-2
         details of such consignments are required form to address such problems.
         to be captured?
                                                        Option to indicate mode of transport
         Form T-2 does not seem compatible for i.e. by road / railways / air / courier /
         Import details;                                pipeline / internet have been
          a) In the field of supplier details how to provided in the form. Vehicle no.
              fill STATE as materials have been would be mandatory only in case of
              imported from outside India.              road transport. GR / RR / Courier
          b) In the field of Transporter details, receipt / Airway bill no. would be
              whether dispatch details from outside mandatory for transport by road /
              India (By Air/By ship) to be uploaded railways / air / Courier in
              or dispatch details of local transporter accordance with Form 7 & 8 of
              from Sea Port or Airport to be Carriage by Road Rules, 2011.
         c) How to upload the details if materials
           directly come to Delhi from outside India
           by Air.
  6.     In case of transport by rail, T-2 requires the The T-2 form is required in respect
         mention of RR no. whereas after receipt of of movement of goods into Delhi
         goods at rail-head, goods need to be moved (RR No. would suffice here) and not
         to warehouse etc. in numerous trucks. for the movement of goods within
         There needs to be a clarification on the Delhi.
         modus operandi to be followed for
         movement of such goods from rail-heads to
         its destination.
  7.     How to upload the details if quantity of one Multiple T-2 forms can be
         invoice is dispatched in multiple vehicles submitted in case of same invoice
         or multiple invoices in a single vehicle?      being covered by various vehicles
                                                        and vice versa. In other words, one
                                                        T-2 form has to be filed for each
  8.     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.
  9.     In case the invoices contain basic rates per The dealer may either give item
         unit for each item and the Central Excise wise details indicating amount for
         Duty and CST is applied on gross sale each rate of tax or he may give
         value as per basic sale rate, item wise rate commodity-wise details and total
         inclusive of central excise and CST for amount of that tax rate.
         each item has to be recalculated in order to Option to inform either unit wise
         match the value of invoice in the portal. rate or total value of each
         Large number of invoices each containing commodity is available.
         large number of items will make it an
         uphill task to submit the online information It means that if four kind of watches
Sr No.                   Question                                   Answers
         in T-2.                                        of different brands/prices have been
                                                        purchased, then entry of all watches
         # Whether Item wise (model wise) details       can be made in one row and instead
         to be uploaded or commodity wise?              of quoting unit price of each brand,
         # Where there are a no. of small line items    total value will be sufficient.
         for Spare Parts models, whether Total          Software has been suitably modified
         Quantity, Total Amount and Average Rate        for the purpose.
         can be uploaded?

 10.     Purchases from nearby places reach within      Facility to populate the data
         an hour or two of invoicing, and sometimes     regarding invoice and commodity
         at night. That does not leave the dealers      details in draft mode and then
         with sufficient time for online submission     saving the same is available.
         and more so when the data to be submitted      Vehicle no. can be inserted just
         is bulky.                                      before submission.

         # Whether correction of information after However, as an alternative, in such
         submission is possible or whether the Form cases, brief information can be sent
         can be cancelled after submission?         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.
 11.     Details in Form T-2 are required to be         Dealers will have an option to
         filled in by the dealer, before entry of       submit another T-2 or amend it in
         goods in Delhi, on the basis of information    such cases. However, all the
         provided by the supplier of goods. At the      instances cited for requirement of
         time of actual receipt of goods, Dealer may    modification or cancellation of T-2
         find certain mis-matches which may occur       Form would need to be explainable
         due to various reasons. In such cases how      with the help of relevant documents
         the details can be corrected and amended in    and accounts of the dealer.
         the system? Similarly, it may be required to
         cancel the T-2 completely. In such cases,
         what would be the process?

  12.    In some cases goods brought in Delhi areForm T-2 is to be filed for inward
                                                 movement of goods and not for
         rejected and returned to the supplier for
         which no C Form will be issued. In such outward movement. Any sales
                                                 returned /coming back into Delhi
         case how the data in T-2 will be reconciled
         with C Form requirement.                have to be reported in T-2. If
                                                 required supporting documents
                                                 could be produced in support.
  13.    Which value of Import is to be updated, Details including all duties are to be
Sr No.                   Question                                    Answers
         including Import Duty or without Duty?         provided. The information should
                                                        be akin to DVAT-30.
  14.    At what time the data is to be furnished in    Dealers may fill T-2 any time but
         Form T-2? Whether at the time goods            would need to ensure that it is
         moved from other States or when goods are      submitted before the vehicle/ goods
         on border or when the goods are received       enter Delhi.
         in the godown.
 15.     If registered office address is mentioned inT-2 intends to capture the details of
         T-2 and the material is to be received at   goods moving into Delhi. If goods
         warehouse, no provision for mention of      are accounted for by Delhi dealer
         separate address.                           then at whichever premises these
                                                     goods are received, it can be taken
                                                     care of them in his books of
 16.   The value of goods is computed There is a provision for entering the
       automatically by the system. In most cases, total value of a commodity taxable
       the amount does not match with the total at one rate of tax.
       invoice amount as required to be
       mentioned at the top of Form T-2, on
       account of rounding off etc.
17. Various goods may enter Delhi for which Every registered dealer is required Form F/C/H may not be required (e.g. to submit the T-2 Form irrespective products which are exempt from VAT in of the taxability of goods. These the state of dispatch). Whether declaration details are required for a proper and in T-2 is required for all goods irrespective effective tax planning and analysis of the fact that Form F/C/H are not with respect to business and required, or only for those goods for which economic trends. Such exercise is said Forms have to be issued from Delhi? 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. 18. In certain cases, some goods may be Every registered dealer is required received physically, which do not form part to file T-2 Form irrespective of the of stock of dealers e.g. stationary, usage of goods. Giving exemptions promotional materials, items received from will deprive the Department of vendor as free replacement against crucial data required for research defective goods etc. Whether T-2 is and planning purposes, which may required in such cases? If required, then help in framing suitable policies. what should be value to be used for Also exemptions may abet evasion purpose of T-2? and defeat the purpose. Still as concession, the details will not be required to be submitted 4 Sr No. Question Answers 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. 19. Whether the new rule is applicable to the Form T-2 is applicable for goods materials imported for, say a factory purchased by Delhi's registered situated in U.P. but parked at Delhi Air dealers. For dealers of other states, a Port for meantime? transit form will required to be filed. Details would be separately intimated. 20. How to deal with the situation when dealer Requirement for submission of T-2 who is not registered with the department is for registered dealers. The matter and is dealing in tax free goods say for for un-registered is being example in books but purchasing CDs for considered separately. promotional purposes from other States. Does the transporter require to carry a Goods brought for self-consumption certificate that the imported goods are for are likely to cost less than Rs. self use. 25,000 and hence will be exempt from filing T-2 Form. 21. Whether farmers will also be required to Information in Form T-2 has to be file form T-2? provided by dealers only if goods are costing > Rs 25,000. E OTHER CLARIFICATIONS 22. In some case the supplier or the buyer does A desktop computer is relatively not have facility of internet. 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. 23. It is practically not viable for the dealers to Buyer has to obtain information intimate the department in advance exact from the seller about his purchases amount of the goods being brought into only before entry of goods into Delhi. All possibilities of goods reaching Delhi. Can a seller wish away the Delhi and the desired information required requirements of a consumer? for filing T-2 not available with the buying dealer. 24. If the selling person is to fill in the The Department will allow multiple particulars of T-2, then dealer of Delhi Ids to be created by dealers. Dealers needs to share his user-Id and password can create such Ids and provide with the seller. Password being a secret them to their suppliers, who can code, sharing it with others will defeat the upload the details in T-2 form at secrecy. 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. 5 Sr No. Question Answers 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. 25. In various cases CST purchase are made Delhi buyers may seek details from where term of sales is FOR and supplier is the supplier through phone or SMS. not providing details of transporter, vehicle If buyer insists, supplier has to number etc. In such cases how to enter said make the information available. details in Form, T-2? 26. In past, on number of occasions we have experienced that Department's website is not accessible due to various technical The department will ensure that the reasons like site under maintenance or web site works without technical connectivity issue. What would be failure. We are upgrading our alternative in such cases especially when hardware and would build in goods are coming from nearby states such enough redundancy to cover as UP, Haryana where transit time is very occasional failure. small? 6 Form T-2 7 SMS format for T-2 DVATT2HR38C8911488678012.5 Instructions i) Write DVAT followed by space. ii) Write T2 followed by space. 8 iii) Write vehicle number without any separator etc. in between and followed by space. iv) Write value of goods tax rate wise in Rupees rounded to the nearest Rupee followed by space. 9 v) Write Rate of Tax on the commodity under DVAT Act (0,1,5,12.5,20). vi) Send to designated Mobile Number of Trade & Tax Department. 10 Vii ) You will receive an SMS confirming the successful submission of information. 11
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