Hi everyone,
I have received a PTRC Show Cause Notice dated 24 March 2026 in respect of a PTRC registration that was cancelled in April 2016 on the grounds of “discontinuance of business.” However, in substance, the firm had no employees at that time.
At the time of cancellation, I was informed by the department that “discontinuance of business” is the standard descripttion used for PTRC cancellation, and accordingly, the same was reflected in the order.
I also came across the following view:
“A partnership firm can continue to operate in Maharashtra without employees even if the PTRC was cancelled, stating ‘discontinuance of business,’ provided GST registration remains active and individual partner obligations are fulfilled.” (Source: Chrome AI / CA Jitesh Telisara)
The notice states that returns have not been filed up to December 2025 and calls upon me to file pending returns along with applicable tax, interest, and late fees and to show cause why a penalty should not be levied.
Further, the entity is a partnership firm, and accordingly, PTEC is not applicable at the entity level in Maharashtra.
In this context, I seek guidance on the following:
- What could be the reason for receiving such a notice despite cancellation?
- Could this be a system or record mismatch at the department’s end?
- Would it be sufficient to reply to the notice by attaching the cancellation order and explaining the above position, or would a personal visit to the PT office be required in this case?
Additional context: I have already replied to the notice on the same day by attaching the cancellation order. It has been 3 days, and I have not yet received any response from the officer.
Please help.
CAclubindia
