(1) A representative who, on account of his liability under section 252, pays any sum, shall be entitled to recover the sum so paid from the person on whose behalf it paid or to retain out of any money that may be in his possession or may come to him in his possession or may come to him in his capacity as a representative, an amount equivalent to the sum so paid.

(2) A representative, or any person who apprehends that he may be assessed as a representative, may retain out of any money payable to the person (hereinafter referred as “the beneficiary”) on whose behalf be is liable to tax under section 252, a sum not exceeding estimated liability.

(3) In the event of any disagreement between the beneficiary and the representative or, as the case may be, the person apprehensive of being assessed as representative as to the amount to be retained under sub-section (2), such representative or person may secure from the Deputy Commissioner of Taxes a certificate stating the amount to be so retained pending the settlement of the liability and the certificate so obtained shall be deemed to be a warrant for retaining that amount.