Raj Kumar Makkad
(Expert) 21 December 2009
You should submit the proof of depositing the tax by your service provider on the equipment hired by you from him to the ITO to satisfy him.
(Expert) 22 December 2009
You can take certificate from the deductee that the amount paid by you has been duly accounted for in computing return of income and argue to the AO that no further tax need to be paid by you. You can cite Hindusthan Cocacolacase pronounced by the Supreme Court in this regard.