Interesting Question on Taxes

hello piyush!!!!!!!

answer to your real question is as follows:

for each and every type of indirect tax you have mentioned in your question , there is a specific legislation governing the same .

for example , service tax is levied as per the provisions of finance act , 1994 chapter V and chapter VA , in which there are self content provisions for chargeability ( taxability ) of a service , its monetary valuation and tax liability, respectively.

moreover determination of taxability can be inferred from the judicial decisions in the same regard.  

general rate of service tax is 10.3% on the value of a service as determined by determination and value rules, 2006 (again , a legislation!!!!!!!!) 

there are numerous provisions for each and every service which cannot be covered here !!!!!

for more information refer to : www.servicetax.gov.in

VAT:

VAT is governed by legislations of various states .therefore each state has seperate laws for tax.however some rules and concepts are common in each and every law , for example , tax rate is applied on sale price , tax is calculated and the tax paid on purchases is deducted (technically it is called input tax credit ) 

example:

sale price rs. 100

vat @ 4% rs. 4

suppose tax paid on purchase of the item is rs. 2 

then 

vat payable rs(4-2) = rs. 2

YES you are right that VAT depends upon state and type of good . Again numerous provisions govern this area.

CONCLUSION: 

in a nutshell each and every tax is a seperate law which has provision for every condition that can arise . Therefore if you want to go deeper into the complexities you have to study them in detail , or take advice form a person who knows them  in advance.

Thank You  

Hello Mr Vikas,

thanks a lot for reply. It is useful.. it would be even better if we have some links to articles.

Regards,

Piyush