Queries for vat applicability on royalty as license fees

  Mr Ashutosh B ,

   Generally royalty paid in the case of goods procured from natural sources,like sand,stone metal,forest produce,soil in some cases, is considered as equivalent to purchase price and charged while levying VAT on purchase value.  Suppose a contractor is bringing sand from a nearby riverbed and uses in a construction work,the expenses he incurred on royalty,transportation and labour will be taken as cost of that material

for levying VAT.........MJK

Dear Sir,

               I have bought rough marble blocks from querry existing in rajasthan. When i got purchase bill there is several taxes charged like Service Tax on DMF Charges, VAT on SERVICE TAX etc ... my question is ... can there any circumstance where the supplier can charge VAT on SERVICE TAX ????