State Act

THE KARNATAKA SALES TAX ACT, 1957

9. Act to apply to non-resident dealers with certain modifications and additions.- In the case of any person carrying on the business of buying or selling goods 1[or of transfer of property in goods (whether as goods or in some other form) involved in the execution of works contract or of delivery of goods on hire purchase or any system of payment of instalments or of transfer of the right to use any goods for any purpose]1 in the 2[State of Karnataka]2 but residing outside the 2[State of Karnataka]2 (hereinafter in this section referred to as a "non-resident"), the provisions of this Act shall apply subject to the following modifications and additions, namely:— (i) In respect of the business of the non-resident, his manager or agent residing in the 1[State of Karnataka]1 shall be deemed to be the dealer; (ii) The manager or agent of a non-resident shall be assessed to tax under this Act at the rate or rates leviable thereunder in respect of the business of such non-resident in which the manager or agent is concerned, irrespective of the amount of the turnover of such business being less than the minimum specified in sub-section (5) of section 5 1[or section 6B;]1 (iii) Without prejudice to his other rights, any manager or agent of a non-resident who is assessed under this Act in respect of the business of such non-resident may retain out of the moneys payable to the non-resident by the manager or agent a sum equal to the amount of tax assessed on or paid by the manager or agent.