Service tax on guarantee payment

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  1. Shalin

    Shalin New Member

    A ltd sell garments in it own brand store.
    It gave one store to franchise basis to B ltd on guarantee that it will do sale of 10 lacs.
    But it could sell only 8 lacs, so 2 lacs was payable extra due to guarantee.
    Will Service Tax & TDS be applicable on 2 lacs.
     
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