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FAQs related to Form T-2
April, 11th 2013
                                            F A Qs
Q.1    What is Form T-2?

Ans.   To minimize physical interaction between dealers and VAT Officials and for efficient
       administration of the Act, it is considered necessary that the details of invoices and
       goods receipt note in respect of goods purchased or received as stock transfer from
       outside Delhi be sought from the dealers of Delhi online. Form T-2 prescribed/notified
       by the Commissioner, Value Added Tax, Department of Trade and Taxes, requires the
       dealers to furnish details of invoices and goods receipt note in respect of goods
       purchased or received as stock transfer from outside Delhi. This form has to be
       submitted online.

       VAT Department would preferably need to be informed about the inward consignments
       before goods enter Delhi. 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. However, in
       cases where the complete information in 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.

       The Transporter is required to obtain a hard copy of Form T-2 and carry it with the
       goods, if the dealer files the complete information in advance. 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. 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.

Q.2    Why Form T-2 has been prescribed/ notified?

Ans.   Form T-2 is an endeavor to check loss of revenue which is caused to the exchequer by
       unscrupulous dealers bringing goods into Delhi and then not recording the said
       transactions in their stocks/books of accounts. Market intelligence reveals that such
       dealers sell such goods without charging VAT. This results in unfair competition to
       honest dealers from unscrupulous dealers.

       In the long run it would reduce the need for checking of vehicles at borders which in
       turn will save lot of time of the transporters and dealers. Statistical data generated will
       help in better tax planning.

Q.3    What is the procedure to be followed by oil companies dealing in petroleum products
       for filing Form T-2? Movement of natural gas is a continuous process starting from
       receipt of gas in pipeline network till the delivery of goods to customer who draws gas
       according to gas availability and plant's requirement. Gas is transmitted through
       underground pipeline. It is not possible to demarcate the boundary of State of Delhi
       in the underground pipeline network. Other petroleum products move in tank
       wagons. Please clarify.

Ans.   For movement by tank wagons, normal procedure of T-2 would apply. Further, Form T-2
       has been modified to indicate the mode of transport and one of these modes would be
       transportation through pipelines. In case of supply through pipelines, the dealer may
       provide information in accordance with the billing cycle used by him to prepare his

Q.4    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

Ans.   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.
       The T-2 Form can be initially uploaded without the Vehicle Number and there would be
       a provision to fill the Vehicle Number in case that becomes available before the goods
       enter Delhi.

Q.5    What is required from the transporters? 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?

Ans.   No permission is required by the Transporters to enter Delhi. The Transporter is
       required to obtain a hard copy of Form T-2 with or without the Vehicle Number and
       carry it with the goods. If vehicle is intercepted then the transporter is required to
       furnish a copy of the T-2 to the intercepting team of the Trade & Taxes Department.
       Once the dealer updates the Vehicle Number in Form T-2 within 24 hours of receipt of
       the goods, the Transporter would obtain a hard copy of the Form T-2 and retain it. 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.

       However, the consequences for not filing Form T-2 would need to be borne by dealer on
       whose behalf goods are brought into Delhi.
Q.6    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

Ans.   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.

Q.7    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?

Ans.   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.

Q.8    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?

Ans.   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.

Q.9    Can goods from NCR move without GR?

Ans.   No. The goods carrier has to move the goods with valid GR prescribed under DVAT Act
       and Carriage of Goods by Road Act.
Q.10   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?

Ans.   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 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. The procedure is illustrated in the following example:

                                     SAMPLE INVOICE

Item                    Quantity(pc)            Rate(Rs/pc)              Value(Rs)

Watches                 10                      1000                     10,000

Watches                 15                      600                      9,000

Watches                 10                      20,000                   200,000

Watches                 12                      15,000                   180,000

                                                Total                    399,000

Gross Amount: Rs.3,99,000/-

Less Discount @10% Rs.39,900/-

Balance: Rs.3,59,100/-

Add Excise Duty @ 12%: Rs.43,092/-

Add surcharge @ 3% of Excise Duty: Rs.1,293/-

Total: Rs.4,03,485/-
Add CST @ 2%: Rs.8,070/-

Grand Total: Rs.4,11,555/-

                               For the purpose of filing T2

Value of 25 watches taxable @ 12.5% = 411555*19000/399000=Rs.19,598/-

Value of 22 watches taxable @ 20% = 411555*380000/399000=Rs.3,91,957/-

Entry in form T2

Item                              Qty      Unit           Rate               Value

Watches Taxable@ 12.5%            25       pieces                            Rs.19,598/-

Watches Taxable@ 20%              22       pieces                            Rs.3,91,957/-

Q.11   Purchases from nearby places reach Delhi within an hour or two and very often due to
       entry restrictions at night. That does not leave the dealer with sufficient time to
       submit Form T-2 online particularly when the data to be submitted is bulky?

Ans.   Even in absence of Vehicle Number, facility to upload and submit the data regarding
       invoice and commodity details has been provided. Vehicle number can also be inserted
       just before submission in case the same is available before entry. However, if the goods
       reach Delhi without the Delhi dealer being able to ascertain the vehicle number, the
       same would need to be updated in the already otherwise complete and not uploaded T-
       2 Form, within 24 hours of receipt of the goods by the Delhi dealer. Further, till
       completed T-2 Form is uploaded, the dealer shall not be permitted to sell, export or
       transfer goods.

Q.12   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?

Ans.   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.

Q.13   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?

Ans.   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.

Q.14   What is the value of goods in cases of import of goods from outside the country? Is it
       including import duty or without duty?

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

Q.15   When should the data be furnished in Form T-2? Whether it should be furnished at
       the time goods move from other States or when goods are on borders of Delhi or
       when the goods are received in the godown?

Ans.   The dealers are required to fill Form T-2 any time before the vehicle/goods enter into

Q.16   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.

Ans.   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.

Q.17   The value of goods is computed automatically by the system. In 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.

Ans.   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.
Q.18   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?

Ans.   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.

Q.19   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.

Ans.   Every registered dealer is required to submit T-2 for all goods entering Delhi irrespective
       of the usage of goods.

Q.20   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.

Ans.   Form T-2 is applicable for goods brought into Delhi by a dealer of Delhi.

Q.21   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?

Ans.   Only registered dealers of Delhi are required to submit Form T-2.

Q.22   Whether farmers are required to submit Form T-2?

Ans.   T-2 Form is to be submitted by registered dealers only. If the farmer is bringing non-
       exempt goods for delivering it to dealer of Delhi, the said dealer will be required to
       submit Form T-2. If the farmer intends to sell the goods himself, he would become a
       dealer requiring registration. Such a farmer would be required to abide by the
       provisions of the Delhi Value Added Tax Act, 2004.

Q.23   What is the position of submission of Form T-2 in cases where supplier or the buyer
       does not have a facility of internet?

Ans.   Submission of Form T-2 is mandatory for all registered dealers. A desk top computer is
       now quite cheap. Further seller/buyer can use the service of their Accountant or even
       an internet cafe to submit the information online. Purchaser can even request the
       selling dealer to submit T-2 on his behalf.

Q.24   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?

Ans.   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.

Q.25   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

Ans.   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.

Q.26 What is the position of Form T-2 where transactions are of the nature of E-1/E-2?

Ans.   The dealer, whose goods finally enter into Delhi shall be liable to submit Form T-2.
       However, if the transaction completed by endorsing GR/RR etc. from Delhi for which
       dealer of Delhi would require a `C' form, the necessary information should be provided.

Q.27   What is the position of submission of Form T-2 in cases where the term of the sale is
       FOR and supplier is not providing details of transporter, vehicle number etc.

Ans.   Delhi buyers must seek details from the supplier through E-mail, phone or SMS. There is
       no reason as to why the supplier will not make the information available if the buyer
       demands it to comply with requirement of law. However, if 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.
Q.28   Our experience suggests that on number of occasions website of the Department is
       not accessible due to technical reasons like site under maintenance or
       network/connectivity issues. What would be the alternative in such cases especially
       when goods are coming from nearby areas where transit time is very less?

Ans.   The Department will ensure that the website can handle all such works without
       technical failure. The hardware capacity is being augmented after allowing for
       redundancy beyond the peak load with reasonable back up to cover occasional failure.

Form T-2
(1) "After filling form, a message will be displayed" You are submitting T2 without vehicle no.
This will need to be updated within 24Hours .Do you want to continue?
(2) After submission, a report is generated with Submission Id and Date.
(3) For Revision of T2, User will enter its previous Reference Id and the reason to revise his details.

(4) After Next, T2 will open.
(5) For Updating Vehicle Details.
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