vat on outdoor catering service

Arun Kumar Aggarwal (Service) (65 Points)

15 December 2007  

Dear Sir,

I got a bill for Rs 120000 from an outdoor catering service.Service tax has been charged on 60% (Rs.72000).Vat should be charged on how much amount?Whether on the full Rs. 120000/- or Only the material portion of the bill ( Rs.48000/-).

CA. Arun K. Aggarwal.