TDS Query

Dear Friends,

Hello everybody,

I need clarification on the following matter

Facts of the case

I am conducting tax audit u/s 44AB of the I.T. Act for the F.Y. 2008-09 of two seperate business entities (namely M/s. A & Co, & M/s. Ajay & Co) but having one common proprietor Mr. Ajay.  

M/s. A & Co started function in the F.Y. 2002-03 & is compling with TDS provision since inception & has TAN number also. Mr. Ajay commenced one more business M/s. Ajay & Co in the F.Y. 2007-08 but had not applied for TAN subsequently.

The turnover of both the business entities for the F.Y. 2007-08 was more than Rs.40L due to which both the business entities have to deduct TDS against payment falling u/s 194C for the F.Y. 2008-09.

Query

 1.Whether Mr. Ajay has to apply for a new TAN Number on behalf of M/s. Ajay & Co., or the TAN Number issued by the department to M/s. A & Co itself is sufficient?

2.M/s. Ajay & Co is making payments in the F.Y. 2008-09 to M/s. A & Co which is falling under the provisions of Section 194C.  Whether TDS has to be deducted in the books of M/s. Ajay & Co?

I need your valuable opinion in this regard

Thanking you,

Dinesh N