Navigating PTEC Applications: How to Handle Multiple Directors and Companies in India?

Hello Experts,

I need some help understanding a few points:

1. Should PTEC be applied to the director's PAN or the Pvt. Ltd. company PAN?

2. If a company has two directors, do I need to apply for two separate PTEC applications?

3. If a person is a director in one LLP and in a Pvt. Ltd. company, can one PTEC be sufficient for both companies?

4. Is it necessary to take PTEC for designated partners of an LLP and PTRC for the LLP as well?

I'm based in Pune, India.

Hello Vinod,

Your questions pertain to the Professional Tax Enrollment Certificate (PTEC) in India. Here are the answers to your questions:

1. The PTEC should be applied to the Director's PAN. The PTEC is a tax levied on professionals and hence it is associated with the individual (director) and not the company.

2. Yes, each director needs to have a separate PTEC because the tax is levied on the individual and not the position. Therefore, for two directors, two separate PTEC applications are required.

3. If a director is designated in an LLP and a Pvt Ltd company, a single PTEC can be used. The PTEC is for the professional and not for the organization the professional is associated with.

4. Yes, both PTEC for designated partners and PTRC for LLP are required. PTEC is for the partners (as they are professionals earning a salary) and PTRC (Professional Tax Registration Certificate) is for the LLP as it is the responsibility of the company to deduct Professional Tax from the salaries of its employees and pay it to the government.

I hope this information helps. Please consult with a local tax consultant or legal expert to ensure you are following all the rules and regulations properly in your specific situation.