Page 141 - GSTL_20th August 2020_Vol 39_Part 3

2020 ] IN RE : DKV ENTERPRISES PVT. LTD. 355
cant approached the authority for advance ruling for the clarification whether his
services can be clubbed under export of service.
The applicant had filed an application in form GST ARA-01, dated 17-7-
2019, by paying required amount of fee for seeking Advance Ruling on the fol-
lowing issues, as mentioned below.
4. Questions raised before the Authority :
Whether the marketing and consultancy services supplied by the appli-
cant are liable under export of service or not?
On Verification of basic information of the applicant, it is observed that
the applicant falls under State jurisdiction, i.e. Assistant Commissioner (ST), Chi-
na Waltair Circle, Visakhapatnam Division. Accordingly, the application has
been forwarded to the jurisdictional officers with a copy marked to the Central
Tax authorities to offer their remarks as per the Sec. 98(1) of CGST/APGST Act,
2017.
In response, no remarks are received from the jurisdictional officer con-
cerned regarding whether there are any proceedings lying pending or passed
relating to the applicant on the issue, for which the Advance Ruling sought by
the applicant.
5. Record of personal hearing :
Sri S. Chakra Ramana, the authorized representative of the applicant
filed a request seeking adjournment of Personal Hearing on 18-9-2019 and finally
appeared on 23-10-2019 and reiterated the written submissions.
6. Discussion and findings :
We have examined the submissions made by the applicant in their appli-
cation and the assertions made by the authorized representative as well at the
time of Personal Hearing.
The applicant submitted that in the capacity of consultant, they will
promote the sale of and solicit orders for the products throughout the Territory
in accordance with the marketing plans and objectives of Grace. The Consultant
shall have no power to bind Grace and shall negotiate for orders of the products
to be transmitted to Grace for acceptance, only at the prices and in accordance
with the terms, conditions, policies and instructions specified by Grace, any of
which may be changed at any time by Grace.
In return, as full compensation for its services the consultant will earn
the commissions on the sale of the products in the Territory pursuant to orders
solicited by itself and accepted by Grace. Net sales price of the products shall
mean Grace‘s FOB price in U.S. dollars for the products exclusive of freight, cus-
toms duties, taxes (including sales and value added taxes) packaging, insurance
and any charges for technical service invoiced by Grace.
The consultant’s commissions will be paid monthly, on the fifteenth day
of the month following receipt by Grace of payment from its customers in respect
of which the commissions were earned and are expressly conditioned upon such
receipt by Grace. Grace may adjust commissions to reflect returns, allowances or
credits in respect of sales of products during prior months, and may adjust the
commission rates upward or downward where required by competitive condi-
tions, but only when mutually agreed. Unless otherwise agreed in writing, all
payments due to the consultant under the agreement will be made by bank trans-
fer in U.S. dollars to the consultant account.

GST LAW TIMES  20th August 2020  141