There is a situation where service receiver has made an agreement on the condition that service receiver themselves will pay the service tax contrary to the law i.e (Liability of paying service tax is cast on service provider by law)
Service provider is ready to provide service on the said terms and conditions. Service comes under "Business Auxilary Service". There is no case of reverse charge.
Service Receiver has paid tax on the said duration and given written confirmation to the service provider for service tax paid.
Now Service provider has got Demand Notice from Service Tax Department saying that service provider can't escape statutory liability of paying service tax, even though servicer receiver has paid the disputed tax.
Now my question is that can service tax department recover twice the service tax from both the parties i.e. service provider as well as service receiver ?
Please also provide some case laws in support of your answers, if possible.
CAclubindia
