Tds

no tds is not required to be deducted..

In my opinion, if there is contract, for saferside TDS is required to be deducted u/s 194C @ 1% or @ 2%, as applicable rate

Purchase of any fixed asset does not attract TDS.

However you can claim VAT setoff if you are expensing out the transaction

No TDS u/s 194C because no work is carried on here. Its simply a purchase however eligible to input credit for registered business.

Section 194C (Relevant Extract for perusal):

"Any person responsible for paying any sum to any resident (hereafter referred to as the contractor) for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract between the contractor and a specified person shall, at the time of credit of such sum to the account of the contractor or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to 1% (Ind/HUF) or 2% (Others) of such sum"

No this case does not attract section 194C because tds is applicable on work contract and this is not work contract, this is purchase of fixed assets and yes eligible for input tax credit.