TaxTMI 
TaxTMI 
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.
SERVICES PROVIDED BY A DIRECTOR
05 Dec 2018 
6 Replies 
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Reverse charge liability: service receiver must pay tax under RCM; supplier should seek refund and receiver must regularise.
The service receiver is primarily liable under the Reverse Charge Mechanism and the supplier cannot discharge that liability by paying tax; where the supplier has paid tax mistakenly, the supplier should seek refund and the receiver must pay under RCM and regularise returns to avoid interest and penalty, though revenue neutrality arguments may be advanced and may require contestation. (AI Summary)
The service receiver is primarily liable under the Reverse Charge Mechanism and the supplier cannot discharge that liability by paying tax; where the supplier has paid tax mistakenly, the supplier should seek refund and the receiver must pay under RCM and regularise returns to avoid interest and penalty, though revenue neutrality arguments may be advanced and may require contestation. (AI Summary)