CAIT: Form T 2 extended till March 31 by Delhi VAT Department

Ludhiana, January 31, 2013: The enforcement of Form T-2 of the Delhi VAT Department  which was a subject of lot of controversy and was scheduled to be implemented from February 1, 2013 has been deferred by the VAT Department till March 31, 2013 whereas for the dealers whose annual turnover is more than Rs. 10 crore or paying an annual VAT tax of more than Rs. 50 lakhs, the last date for T-2 form has been extended till February 28, 2013.

This decision of the VAT Department was taken yesterday at a meeting of the traders led by the Confederation of All India Traders (CAIT) and VAT Commissioner Prashant Goyal and other senior officials of the VAT Department held on Wednesday evening at VAT Headquarters. The decision is a big immediate relief to the traders of Delhi. 

The CAIT has complimented the VAT Commissioner for his positive approach in mitigating the genuine problems of the traders with process of dialogue and equally shared his concern on increase in VAT revenue as also to stop illegal inflow of goods in Delhi from other States. VAT Commissioner Prashant Goyal while appreciating the role of trading community in the development of Delhi stressed the need to identify more sources of VAT revenue as Delhi has the potential of raising revenue. He also said that Department is committed to in make a mechanism to check the illegal entry of unrecorded goods in Delhi which is distorting the competition and Delhi trade. He sought cooperation of traders and said that the joint efforts of the traders and the Department will strengthen Delhi trade further.

CAIT National Organising Secretary Satish Garg who led the discussion in the meeting stated that since both the Department and the Traders are the "tax collectors" for the government, such understanding between the Department and the Traders will yield better results in the time to come. The solutions of the problems of the traders and augmentation of revenue and check on illegal inflow of goods in Delhi, are the core issues which needs to be solved with continuing better understanding between Department and Traders. However, he drew the attention of the VAT Department about problems of the traders on account of refund and non-availability of C- Forms, which is causing harassment.

Garg and Delhi State CAIT General Secretary Vijay Pal informed that very soon the CAIT will launch a special drive among Trade Associations of Delhi in association with VAT Department to have a mechanism of "one stop solution" for problems of the traders as also to find out possible ways and means to augment the revenue. Soon a delegation of the CAIT will meet VAT Commissioner with its proposal and sought cooperation of the Department.