When to deduct tds

This query is : Resolved

amol (Querist)
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30 December 2011 Dear All,

the company has entered into rent agreement with ABC.As per the agreement rent is payable within 10 days from the end of the month.
Till Mar-2011 the company regularly credit the rent to ABC on monthly basis and deduct TDS.
Now the ABC has become bankrupt and court proceeding has been initiated against them.
The ABC has outstanding payable to companies holding company-XYZ.
The company has credited rent for the period from April to Sept-2011 to ABC on 30.09.2011 and deducted tds on 30.09.2011 and do not make any rent payment to ABC in view of it will be adjusted against amount payable by ABC to holding company-XYZ.

Whether the tds deducted by company on Six monthly basis is correct? or it should be deducted on monthly basis as per rent agreement?