TDS on amount remitted to NRI

Prabeer (B. COM (H) CA & CS Final)   (5484 Points)

30 December 2008  

Mr. X has been deputed in Sharjah by ABC Pvt. Ltd. for a consideration of
$ 2500 in a month. The amount is remitted to Mr. X from Head Office of
ABC Pvt. Ltd. Kolkata, W.B., India. Mr. X is not an Indian Citizen.
Should ABC Pvt. Ltd. liable to deduct TDS on the amount remitted to Mr. X ????
Please provide your answer with Case Laws if possible.