VAT after service tax

pawan kumar (student) (93 Points)

09 October 2008  

Dear Expertits !

A construction company applied to sales tax authorities for refund of VAT Input Credit as all its purchases were with in state and all its customers had deducted WCT. The authorities after detailed checking of records,instead, have asked to deposit more tax stating that like excise duty, VAT should be charged on the total value after adding service tax. Is it not a tax on tax ?? please advice.

regards