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Section 163Central Act

Section 163: Who may be regarded as agent

Who may be regarded as agent.

(1)

For the purposes of this Act, "agent", in relation to a non-resident, includes any person in India-

(a)

who is employed by or on behalf of the non-resident; or

(b)

who has any business connection with the non-resident; or

(c)

from or through whom the non-resident is in receipt of any income, whether directly or indirectly; or

(d)

who is the trustee of the non-resident, and includes also any other person who, whether a resident or non-resident, has acquired by means of a transfer, a capital asset in India:
Provided that a broker in India who, in respect of any transactions, does not deal directly with or on behalf of a non-resident principal but deals with or through non-resident broker shall not be deemed to be an agent under this section in respect of such transactions, if the following conditions are fulfilled, namely:-

(i)

the transactions are carried on in the ordinary course of business through the first-mentioned broker; and

(ii)

the non-resident broker is carrying on such transactions in the ordinary course of his business and not as a principal.
[Explanation. - For the purposes of this sub-section, the expression "business connection" shall have the meaning assigned to it in Explanation 2 to clause (i) of sub-section (1) of section 9 of this Act.] [ Inserted by Act 32 of 2003, Section 68 (w.e.f. 1.4.2004).]

(2)

No person shall be treated as the agent of a non-resident unless he had an opportunity of being heard by the Assessing Officer as to his liability to be treated as such.

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