This step has been taken to stop illegal inflow of goods into Delhi from other states, and check loss of revenue caused by unscrupulous traders bringing goods into Delhi without any records
By Richa Chakravarty
Monday, May 16, 2013: From April 2013, the Department of Trade and Taxes (DVAT), Government of the National Capital Territory of Delhi, has made it mandatory for the traders of Delhi to submit the details of invoices and receipts of all goods received from other states before these physically enter the boundary of Delhi. Traders need to fill this information online, in a form called T-2, within 24 hours of the dispatch of the goods. This is a part of the Value Added Tax (VAT) of the Government of NCT of Delhi. However, this step, which has been taken to stop illegal inflow of goods into Delhi from other states, has not been welcomed by the traders.
Why T-2 is necessary
According to DVAT, T-2 aims to minimise physical interaction between the dealers and VAT officials and enable the efficient administration of VAT. This form is an effort of the government to check the loss of revenue which is caused to the exchequer by unscrupulous traders who bring goods into Delhi without recording the transactions in their stocks or books of accounts. These traders sell these goods without charging VAT, leading to unfair competition to honest traders. The statistical data, thus collected, will help in better tax planning.
This form is applicable for those traders who have invested more than Rs 100 million (Rs 10 crore) as working capital.
According to a government notification, if the number of the vehicle in which the goods arrive, is not available in advance, Form T-2 can be filed without the vehicle number, which can be updated within 24 hours of receiving the goods by the Delhi trader, failing which, the Delhi trader cannot dispose of, sell or dispatch these goods till the vehicle number in Form T-2 is updated online.
To fill the details online, a login ID and password are provided to the trader by the VAT officer of that area/ward.
A burden on traders?
While the government feels that this system will help to control the grey market, traders feel it is an extra burden on them. Says GS Sharma, proprietor, Shri Ram Marketing, “This is an extra cost that we traders will have to bear. Not only do we need to have a computer and an Internet connection but will also have to assign a person especially for this work. As traders, we have to look after our business and growth opportunities and cannot channel our energies towards filling minute details of all the goods purchased.”
Sharing the same view, Manish Kwatra, managing director, Metro Electronic Products, says, “We deal in numerous brands and to keep on filling details for every transaction is a tedious task for any trader.”
Traders will also face penalties, if they do not fill T-2 on time. Failing to fill the form will lead to confiscation of goods. Along with this, the trader will also not receive Form C, which is mandatory for filing Central Sales Tax (CST).
Electronics Bazaar, South Asia’s No.1 Electronics B2B magazine
