Tds deduction to an transport agency

SRIKAR REDDY (CA -FINAL) (28 Points)

27 March 2017  
A Ltd is a transport company indulges in the business of transport of goods(both household and commercial ) having its own vehicles.Apart from its vehicles the A ltd hire vehicle from other transport agencies for the transportation of goods and it pays hire/freight charges to the agency. 1. Should the A Ltd deduct TDS on payment of Hire/Freight charges? 2.This is a case of A.Y 2012-13 where TDS provision of deducting to transport agency having more than 10 heavy vehicle is not applicable. Please suggest me should A Ltd need to deduct TDS to the agencies (for A.y 2012-13).If TDS is need to be deducted at what percentage and section the A Ltd should do. Thankyou.