TDS on payment to sub-contractor

Tahseen Tabassum (CA-FINAL) (644 Points)

25 April 2009  

A company have a contract with a supplier of Plant for the supply of plants at the office premises of the customer as these plant supplier was exempt from tax they did not charge vat on it but while making payment to the sub-contractor (supplier of plant ) the company should deduct TDS @ 1.133%.

I want to know whether i am right or not on this point as in some case co. have deducted TDS and in some case not.

Please anyone explain it to me.