That under the Agreement the restricted meaning of the term royalty shall continue to operate despite the amendment in law. Therefore the payments made by the assessee were not in the nature of royalty either under the domestic law or under the Agreement. The obligation under section 195 to deduct tax is at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of cheque or draft or any other mode, whichever is earlier. Therefore, it is relevant to see the obligation of the payer at the time of credit or actual payment and any subsequent amendment through retrospective effect, cannot create any obligation upon the payer which did not exist at the time of crediting or actual payment of the sum. Therefore no disallowance could have been made under section 40(a)(i) for non-deduction of tax on the payments to non-resident parties. (AY. 2002-2003, 2003-2004)