vat is calculating on local sales.when we sale the goods it
id deducting on the amount as per percentage.

service tax will be paying by all the service providers by
collecting the service tax for whom we had been offered the
service and remmit it to the govt as the service tax is not 
paying directly by the service provider as we discussed in 
above example it's an indirect tax

rates  - 12.36% 12% is service tax. .36% is e.d cess

vat - meas value added tax is leivied at every point of sale
      which has come in to force from 2005 to under stand 
      this concept we should know abbout input output
input - taxpaid on puchases
output - tax paid on sales
in put credit - the tax which was paid at the time of 
                 purchase will be deducted from 
                 the tax he need to pay at the 
                 time of sales    
VAT PAYABLE - OUT PUT  - IN PUT
RATES     - 1%, 4%, 12.5%  EXCEMPTED, ZERO RATED