New Delhi, Mar 12 (KNN)  Delhi traders have staged a massive protest here today in protest against the VAT department notification that makes it mandatory for traders to provide online details of good purchased from outside Delhi, prior to their entry into the city.

The notification also implies that failure on the part of traders to provide details of vehicle carrying the goods along with the receipt number of the order can result in the department barring entry of the vehicle.

Reacting to the VAT department notification of February-28, Executive Secretary, Delhi Motor Traders Association, B Suresh said, “The T2 form is ridiculous.  It is very complicated and lengthy with so many details to fill in.” 

However, the VAT Department has assured them that it would make it easier for them.

“That is easier said than done.  The department should weigh the merits and demerits before taking such a decision.  But as traders, we know better the practical difficulties we would encounter with such a requirement.  Moreover many traders do not have computers,” Suresh told KNN.

Like several other traders’ associations, Delhi Motor Traders’ Association is represented at today’s protest against the notification at Chandni Chowk.

The rationale for such a notification, according to the department is that it will help streamline the sale-purchase system in Delhi, enabling them to crack down on illegal deals. 
The VAT department has also launched a special SMS facility that will allow traders to message details and receipt number which will be automatically uploaded into the department’s database.  It has assured traders that it would mobilise officials who will have access to their database at all entry points.

Form T-2 is an endeavour 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.

The notification will come into effect from March-15. 

“…the details of Invoice and Goods Receipt (GR) Note in respect of all goods purchased or received as stock transfer or received on consignment agreement from outside Delhi shall be submitted online by dealers, using their login id and password, before the goods physically enter the boundary of Delhi. The details shall be submitted by all dealers, except dealers exclusively dealing in Tax Free Goods, having GTO > Rs. 1 crore in 2012-13 or on any date in the current financial year on which the dealer attained/attains the lower limit of GTO of Rs. 1 crore. For furnishing online details, the Form T-2 annexed with this Notification shall be filled for each vehicle entering Delhi and by each dealer whose goods are carried in that vehicle,” the notification signed by Commissioner, Value Added Tax, Prashant Goyal said.

“Further, the T-2 details can be alternatively submitted in a summary manner through a web based mobile application/ SMS and requisite details in Form T-2 submitted online subsequently but within 24 hours of entry of goods in Delhi. The format shall be as under: DVAT <space> T2 <space> Vehicle No. <space> Amount <space> VAT Rate applicable in Delhi,” it said.  (KNN/ES)