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Applicability of tds to exempted local authority

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(Querist)
13 February 2014 a local authority is exmpted u/s 10 and it has given building on rent to a company. should a company deduct TDS u/s 194 I.?
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C A S.S.Agarwal, M.Com.,LL.B,

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C A S.S.Agarwal, M.Com.,LL.B, (Expert)
13 February 2014 The local authority should submit certificate u/s 197 for no deduction of TDS

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