TDS in case of payment in Foreign Currency

Hi Friends,

i have a question in relation to the provisions of Income Tax Act 1961. Please give me the solution of the problem.

An educational institute has purchased a computer software from a company registered at England & Wales. Payment is to be made in US $ as per the agreement. At the time of payment of US $ 10,000/- as part payment, whether the TDS is required to be deducted by the institute or not. The amount given above is gross and the institute is not bearing the liability of paying tax liable on this payment.

Whether a Chartered Accountant can issue a certificate authorising the institute to pay the sum without the deduction of tax ?

Please inform me the relevant section or rule of the income tax law.

Thanks in advance.