Clause 170 - Representative assessee - Direct Taxes Code Bill, 2009

C. - Procedure for assessment in special cases Representative assessee 170. (1) For the purposes of this Code, "representative assessees" in respect of an assessee means- (a) the agent of a non-resident, if the assessee is a non-resident; (b) the guardian, or manager, of a minor, lunatic or idiot, if the assessee is a minor, lunatic or idiot; (c) the Court of Wards, the Administrator-General, the Official Trustee, any receiver or manager (including any person, whatever be his designation, who manages property on behalf of the assessee) appointed by, or under, any order of a court, if such person receives, or is entitled to receive, income on behalf, or for the benefit, of the assessee; (d) a trustee appointed under an oral trust, or a trust declared by a duly executed instrument in writing whether testamentary or otherwise, if the assessee is a trust; (e) the legal representative, or the executor, if the assessee dies; (f) a participant, or the legal representative of the deceased participant, in the case of dissolution of an unincorporated body; and (g) the liquidator appointed under section 448, or section 490, of the Companies Act, 1956 in the case of a company. (2) The "agent" in relation to a non-resident includes - (a) any person in India - (i) who is employed by, or on behalf of, the non-resident; (ii) who has any business connection with the non-resident; (iii) from, or through, whom the non-resident is in receipt of any income, whether directly or indirectly; or (iv) who is the trustee of the non-resident;and (b) any other person who has acquired, by means of transfer, a capital asset in India from the non-resident. (3) 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, a 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:- (a) the transactions are carried on in the ordinary course of business through the first mentioned broker; and (b) the non-resident broker is carrying on such transactions in the ordinary course of his business and not as a principal. (4) The "executor" in relation to the estate of a deceased person means - (a) an individual, if such individual is the only executor; or (b) an association of persons comprising all the executors, if there are more than one executor. (5) No person shall be treated as the agent of a non-resident unless he has had an opportunity of being heard by the Assessing Officer as to his liability to be treated as such.