Levy of vat on service tax

VAT is not charged on the services/labour part,if proper acounts are maintained and declared in the returns. Without maintaining correct accounts or,as routine way,some dealers take the permitted ratios for calculations. That is: while reporting in vat returns a ratio of 70:30 ration of material and labour is taken and for service tax 60:40 ratio of the same are assumed. In such a situation around 10% of services value may get taxed under VAT.......mjk