Violation of reverse charge

[Pawan Agarwal]

Respected Seniors,

If i received a service which falls under reverse charge mechanism but by mistake service provider charges service tax on his bill and i pay the bill with service tax then..

A) Should I am liable to pay service tax again under reverse charge??

B) Can i avail cenvat credit of service tax paid to service provider on the basis of his invoice?

AI Summary

Service Tax Error: Pay Independently, Claim Refunds; Reverse Charge Liability Must Be Settled per Law to Avoid Penalties. A service recipient queried about paying service tax under the reverse charge mechanism after mistakenly paying it to the service provider. Experts advised that both parties must pay their respective service tax independently. The service provider should claim a refund for any excess tax paid, and the recipient should pay their liability under reverse charge and then seek a refund. While some judgments suggest no additional demand if the tax is paid inadvertently, strict adherence to the law is recommended to avoid penalties. The discussion highlighted the importance of following legal provisions despite no revenue loss.