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CS Executive · Setting Up of Business, Industrial and Labour Laws · Various Initial Registrations and Licenses

Arjun Traders, a partnership firm in Ludhiana, holds an IEC and now wants to export to several countries from three different branch locations. Which statement about its IEC is correct?

The IEC is a single 10-character code linked to the entity's PAN and is valid for all its branches. Partnership firms can obtain it, and no separate code is required per branch. It has lifetime validity, though details must be updated periodically.

  1. AA separate IEC is needed for each branch
  2. BThe IEC is a single 10-character code against the PAN of the entity, valid for all its branchesCorrect
  3. CThe IEC must be renewed every year with a fee
  4. DThe IEC is issued only to companies, not to partnership firms

Explanation

The IEC is a 10-character code issued on the basis of the entity's PAN, and one IEC is valid for all branches of the entity. It is issued to proprietors, firms, companies and others, so the partnership qualifies. It has lifetime validity and needs no annual renewal, though details must be updated annually.

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