Assessee is  engaged in business of running a data & call centre for export of services & domestic BPO.  Assessee had made payment with regard to connectivity charges for co-location and connectivity service provided by a UK based company for purpose of connecting assessee with various customers in UK towards making voice and data connectivity.  It did not deduct TDS on same. Assessing Officer held that assessee was liable to deduct TDS under section 195 as these payments were in nature of royalty even though deductee did not have any PE in India. He disallowed the charges  under section 40(a)(i). On appeal the tribunal held that connectivity charges paid by assessee were for process of connecting assessee with various customers for making voice and data connectivity and, thus, same being for use of process, was to be taxable as royalty.  Order of the AO is affirmed.  (AY. 2012-13 to 2015-16)