works contract agreement

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 April 2011 we are running an institute and we had hired a transporter for pick & drop facility of students & staff from their place to the institute and back again. we have deducted TDS u/s 194C @2% (as this is a works contract agreement between the institute & the transporter),but the AO is of view that TDS should be deducted u/s 194I. there is no monthly agreement between the institute & the transporter,and the vehicles are also under his control only. my question is-
1. Are we wright in deducting TDS u/s 194C.
2. is there any format for works contract agreement between transporter and the beneficiary.