No TDS

Dear Aalhad,

Assessee has to file Form 13 to his Assessing Officer, in return assessing officer will require the assessee to submit the proof of payment of tax by Company A or u can voluntarirly attached this thing with Form 13.

If AO is satisfied he will issuue a certificatefor Lower or no deduction of Tax..

Assessee can submit that certificate with Company B, based on which TDS will not be deducted or deducted at a lower rate. 

Thank you for the help.

I wanted know whether there will b any penalty for company B for no TDS if the assessee fails to submit a certificate obtained from AO.

Dear Aalhad,

Yes in the absence of certificate, if Co. B fails to deduct TDS then it can be held liable for such faliure.