Service tax? or Vat? or Both? if How?

This query is : Resolved

CHEZHIYAN (Querist)
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18 July 2008 Dear Friends,

My Client is a Software Seller, they buy and sell softwares to colleges and institutions, now their suppliers started charging service tax as well as vat?
how should we charge our customers,

Method 1

Price = XXX
Service tax @12.36%
on XXXX = YYY
Vat on (XXX+YYY) = ZZZ
Bill Amount(XXX+YYY+ZZZ)= $$$

or Method 2

Price = XXX
Service tax @12.36%
on XXXX = YYY
Vat on (XXX) = ZZZ
Bill Amount(XXX+YYY+ZZZ)= $$$

or Method 3

Price = XXX
Vat @ 4%on (XXX) = YYY
Service Tax @12.36%on(XXX) = ZZZ
Bill Amount(XXX+YYY+ZZZ) = $$$

or Method 3

Price = XXX
Vat @ 4%on (XXX) = YYY
Service Tax @12.36%
on(XXX+YYY) = ZZZ
Bill Amount(XXX+YYY+ZZZ)= $$$

Please Help Me in This Case Many Suppliers Charges in Different Methods Method is been observed in many suppliers Invoices Which is Correct Method For Calculation