TDS for foreign company performing services in India

Dear Sir/Madam

we have placed an AMC ( Annual Maintenance Contract) on a Foreign OEM. The vendor has performed the required task. However my finance team has deducted 10% as TDS for this service. Vendor claims that there should be no Tax deducted at source as already the income is being taxed in his country ( USA) .Kindly clarify how this works

TIA

Ravindra kumar