Certain agents liable to tax for sales on behalf of principal 51

56. Certain agents liable to tax for sales on behalf of principal :- (1) Where any person sells or purchases any taxable goods on behalf of his

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principal then such person and his principal shall both be jointly and severally liable to pay taxes on the turnover of such sales or purchases. Provided, if the principal, on whose behalf the commission agent has sold or purchased any goods, shows to the satisfaction of the Commissioner that the tax has been paid by such commission agent on such goods, the principal shall not be liable to pay the tax again in respect of the same transaction. (2) Where a manager or agent of a non-resident dealer sells or purchases any goods on behalf of a non-resident dealer in the State, then the non-resident dealer and the manager or agent residing in the State, shall be jointly and severally liable to pay tax on the turnover of such sales or purchases; Provided that, if the non-resident dealer shows to the satisfaction of the Commissioner that the tax payable in respect of such sale or purchase has been paid by the manager or agent residing in the State, then the non-resident dealer shall not be liable to pay in respect of the same transaction.