(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.
