Sec 195 of the Act will be attracted since the payment is made to a non-resident entity. Further, you have to check the provision of DTAA of India with the country where the NR entity is registered.
For rate of TDS, i need to know the detail of the agreement and transaction. Also, whether the entity has any PE in India or not. As far as I think from your question, there will be no liability of TDS since the same is neither royalty nor fre for technical services. There are certain high court and supreme court judgement on this too.
P.S - To give an appropriate opinion, i need more details. However, i feel the reply will be helpful in this matter.