Should VAT be charged on ST also?

Akshatha.A.S (Practicing CA) (58 Points)

30 November 2009  

Wef 01.09.2009, service tax and VAT both are charged on licenses. Should the VAT be calculated only on the license amount or on the sum of license and service tax? For ex., if the license amount is Rs.100, ST is Rs. 10.3, should the VAT be charged on Rs.100 or Rs. 110.3?