SERVICES PROVIDED BY A DIRECTOR

[raj babu]

what will be the remedies available if the director has charged for his professional services in forward charge and company has not paid service tax on reverse charge mechanism. The director has paid all his laibility for service tax without claiming any cenvat credit.

AI Summary

Director Charges for Services; Company Liable for Reverse Charge Service Tax; Urged to Act Quickly to Avoid Penalties. A discussion on a forum addresses the issue of a director charging for professional services under the forward charge while the company failed to pay service tax under the reverse charge mechanism. Experts advise that the service receiver (company) is liable to pay the service tax, and the director should seek a refund for the tax already paid. The consensus is that if the tax is paid to the exchequer, it cannot be demanded again, but the company should act swiftly to avoid penalties. If necessary, the company should justify and contest the situation with the authorities.