Tds deducted or not

Vivek Prasad (Student CA Final ) (45 Points)

13 September 2015  
In case of a company cancels the contract with the contractor as it is not satisfied with the work and pays the contractor Rs.2 cr as demanded by the contractor for material supplied and services provided on a lump sum basis, there is no bifurcation of materia and service. TDS is deductible or not and if yes on what amount.