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Tds on contractors for supply of medical goods

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(Querist)
22 August 2014 dear sir, a government organization(A) called for a tender to supply of medicines so an organization came forward to supply which is also a government organization ( B) here tds on contractors will apply or not I.e. A has to deduct TDS on B. plz tell me
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CMA. CS. Sanjay Gupta

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CMA. CS. Sanjay Gupta (Expert)
22 August 2014 TDS not required to be deducted in the given case. TDS not applicable on Purchase Contract/Transaction.

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